WEBVTT 00:00:24.650 --> 00:00:25.790 Like utilities Commission, 00:00:25.790 --> 00:00:30.210 public voting meeting on a state Thursday October 8th, 2020. 00:00:30.210 --> 00:00:31.690 Today's call is being recorded. 00:00:31.690 --> 00:00:34.630 If you have any objections, you may disconnect at this time. 00:00:34.630 --> 00:00:37.140 President Batjer, you may proceed. 00:00:37.140 --> 00:00:38.370 Thank you very much operator 00:00:38.370 --> 00:00:40.310 and good morning everyone. 00:00:40.310 --> 00:00:41.388 We need to establish a quorum agenda clerk, 00:00:41.388 --> 00:00:44.053 can you please call the roll? 00:00:45.812 --> 00:00:48.093 Commissioner Shiloma? 00:00:48.093 --> 00:00:49.492 Present. 00:00:49.492 --> 00:00:51.715 Commissioner Guzman Aceves. 00:00:51.715 --> 00:00:52.956 Here. 00:00:52.956 --> 00:00:54.595 Commissioner Randolph. 00:00:54.595 --> 00:00:56.112 Here. 00:00:56.112 --> 00:00:57.782 Commissioner Rechtschaffen. 00:00:57.782 --> 00:00:58.615 Present. 00:00:59.883 --> 00:01:01.290 And President Batjer. 00:01:01.290 --> 00:01:04.860 Here. A quorum has been established. 00:01:04.860 --> 00:01:07.630 Welcome to the California public utilities Commission. 00:01:07.630 --> 00:01:10.706 I'm calling this meeting of October 8th, 2020 public agenda 00:01:10.706 --> 00:01:15.340 number 3472 to order. 00:01:15.340 --> 00:01:17.690 Due to the Coronavirus pandemic 00:01:17.690 --> 00:01:19.400 and the shelter in place order, 00:01:19.400 --> 00:01:22.240 we're conducting today's business meeting online 00:01:22.240 --> 00:01:24.570 and by remote participation. 00:01:24.570 --> 00:01:28.150 The meeting is live stream at CPUC's website. 00:01:28.150 --> 00:01:33.150 You can view the meeting at ww.adminmonitor.com/ca/cpuc. 00:01:36.700 --> 00:01:39.210 Admin monitor is one word. 00:01:39.210 --> 00:01:42.770 Public engagement is critical to the CPUC process. 00:01:42.770 --> 00:01:44.500 If you wish to make a public comment 00:01:44.500 --> 00:01:49.010 dial into 800-857-1917 00:01:51.440 --> 00:01:53.697 and enter pass code 9899501 00:01:57.700 --> 00:01:59.980 and press star one. 00:01:59.980 --> 00:02:01.800 You will be placed into a tube 00:02:01.800 --> 00:02:04.930 and the operator will take your name and information. 00:02:04.930 --> 00:02:06.920 You will be called upon to speak 00:02:06.920 --> 00:02:11.320 when we get to the public comment period in today's agenda. 00:02:11.320 --> 00:02:13.640 If you encountered difficulty calling 00:02:13.640 --> 00:02:15.670 into the public telephone line 00:02:15.670 --> 00:02:19.383 please email votingmeetinghelp@cpuc.ca.gov, 00:02:24.030 --> 00:02:26.373 voting meeting help is one word. 00:02:27.680 --> 00:02:28.865 At the top of this meeting, 00:02:28.865 --> 00:02:33.865 I wanted to point, sorry, I had a little background noise. 00:02:33.990 --> 00:02:35.270 At the top of this meeting, 00:02:35.270 --> 00:02:39.060 I wanted to point out that earlier this week, the CPUC 00:02:39.060 --> 00:02:41.500 in conjunction with the California independent 00:02:41.500 --> 00:02:44.600 system operator and the energy Commission 00:02:44.600 --> 00:02:47.348 issued a preliminary root cause analysis 00:02:47.348 --> 00:02:52.348 of the mid August rotating outages California's experienced. 00:02:52.580 --> 00:02:54.662 We have received a report on the findings. 00:02:54.662 --> 00:02:56.400 We will receive a report 00:02:56.400 --> 00:03:00.030 on the findings of the analysis from Pete Scala, 00:03:00.030 --> 00:03:03.630 director for efficiency, electrification, and procurement 00:03:03.630 --> 00:03:07.680 from our energy division after the public comment period. 00:03:07.680 --> 00:03:09.941 So I encourage everyone to stay on 00:03:09.941 --> 00:03:13.370 so that they may receive this information. 00:03:13.370 --> 00:03:16.183 I would also like to take a moment to recognize 00:03:16.183 --> 00:03:18.680 that this is customer service week 00:03:18.680 --> 00:03:21.127 and give a big shout out to our staff, 00:03:21.127 --> 00:03:23.840 the consumer affairs branch 00:03:23.840 --> 00:03:26.000 or at the front lines every day 00:03:26.000 --> 00:03:29.062 helping consumers resolve issues big and small 00:03:29.062 --> 00:03:33.312 and deeply moved by your work to keep Californians connected 00:03:33.312 --> 00:03:38.312 and engaged with CPUC throughout the COVID-19 pandemic. 00:03:38.680 --> 00:03:42.190 And the wildfires is spent a tremendous effort 00:03:42.190 --> 00:03:44.184 and a lot of work, 00:03:44.184 --> 00:03:45.017 and you all have been brilliant. 00:03:45.017 --> 00:03:47.920 Ike all Commissioners and I appreciate the extraordinary 00:03:47.920 --> 00:03:51.930 efforts you do to help others each and every day. 00:03:51.930 --> 00:03:54.400 California's most vulnerable consumers need 00:03:54.400 --> 00:03:55.830 and rely on your support, 00:03:55.830 --> 00:03:58.200 especially during these critical times 00:03:58.200 --> 00:04:02.080 for those of you at the frontline of customer interaction. 00:04:02.080 --> 00:04:04.720 I certainly, I am certain that 00:04:04.720 --> 00:04:07.300 despite whatever challenges we face 00:04:07.300 --> 00:04:10.050 you will continue to help others with kindness, 00:04:10.050 --> 00:04:13.650 determination, and commitment to customer service. 00:04:13.650 --> 00:04:16.800 I also wanna thank all of the CPUC staff 00:04:16.800 --> 00:04:19.926 for the work they do to carry out our responsibilities 00:04:19.926 --> 00:04:23.750 and of this organization on behalf of all Californians. 00:04:23.750 --> 00:04:24.890 So thank you all. 00:04:26.110 --> 00:04:29.480 We are now at public comment part of the agenda. 00:04:29.480 --> 00:04:31.565 If you wish to make it public comment, 00:04:31.565 --> 00:04:35.310 and you have already dialed in to the public comment 00:04:35.310 --> 00:04:39.280 telephone line, please press star one to get 00:04:39.280 --> 00:04:41.113 into the public comment queue. 00:04:43.220 --> 00:04:46.842 CPUC rules, do not allow for parties in proceedings 00:04:46.842 --> 00:04:49.940 to speak about open proceedings. 00:04:49.940 --> 00:04:53.400 The public can make comments addressing items on the consent 00:04:53.400 --> 00:04:58.400 and regular agenda and including items, not on the agenda. 00:04:58.780 --> 00:05:02.050 Please note that there will not be public comment 00:05:02.050 --> 00:05:07.050 on items 13, 16, and any item on the closed session agenda. 00:05:09.129 --> 00:05:11.550 You will have two minutes to speak. 00:05:11.550 --> 00:05:15.800 You will hear a bell sound when your time is up. 00:05:15.800 --> 00:05:19.040 Please be mindful of other speakers in the queue 00:05:19.040 --> 00:05:21.620 and keep to your allotted time. 00:05:21.620 --> 00:05:23.350 With that guidance in mind, 00:05:23.350 --> 00:05:25.150 I welcome today's speakers 00:05:25.150 --> 00:05:27.000 and I will now turn to the operator 00:05:27.000 --> 00:05:29.993 to open the public comment telephone line, operator. 00:05:31.484 --> 00:05:34.670 Thank you. The public comment line is now open. 00:05:34.670 --> 00:05:37.280 If you wish to speak during the public comment period, 00:05:37.280 --> 00:05:39.640 again, press star one, unmute your phone 00:05:39.640 --> 00:05:41.020 and clearly record your name 00:05:41.020 --> 00:05:43.400 and organization when prompted. 00:05:43.400 --> 00:05:45.570 Our first caller is Jim Stewart. 00:05:45.570 --> 00:05:46.773 Sir, you may go ahead. 00:05:48.910 --> 00:05:53.580 Hi, this is Dr. Jim Stewart and energy consultant, 00:05:53.580 --> 00:05:58.580 and I am calling into support the a hundred 00:05:58.720 --> 00:06:00.860 electric elected officials. 00:06:00.860 --> 00:06:03.700 He just sent all the Commissioners 00:06:05.644 --> 00:06:08.643 a letter opposing the increased PCIA charges 00:06:08.643 --> 00:06:12.823 on millions of CCA rate payers. 00:06:14.120 --> 00:06:18.070 The proposed increases are totally unacceptable. 00:06:18.070 --> 00:06:23.070 As you know, the PCIA has risen more than 600% since 2013 00:06:26.270 --> 00:06:28.699 in the PG&E service area 00:06:28.699 --> 00:06:33.699 and nearly doubled since the CPUC changed the rules in 2018, 00:06:36.440 --> 00:06:41.440 that 2018 decision has some very sorted history. 00:06:44.130 --> 00:06:47.860 The initial proposed decision drafted by the CPUC staff 00:06:47.860 --> 00:06:52.477 and they LJ was a reasonable compromise that balanced well 00:06:52.477 --> 00:06:57.477 the needs of mid rate payers in both ICU, excuse me, 00:06:58.330 --> 00:07:03.330 IOU and CCA areas, but suddenly at the last minute 00:07:04.991 --> 00:07:09.897 Commissioner Perkins introduced a alternative resolution 00:07:19.010 --> 00:07:23.940 which completely shafted the CCA rate payers. 00:07:23.940 --> 00:07:27.438 It set up a horrible situation 00:07:27.438 --> 00:07:32.438 in which now all the IOUs are proposing drastic increases 00:07:33.005 --> 00:07:37.590 in their TCIA charges. 00:07:37.590 --> 00:07:42.590 And then shortly after that decision was adopted 00:07:44.819 --> 00:07:49.819 by the Commission, that Commissioner left to go 00:07:50.180 --> 00:07:54.150 to a very nice maybe six or seven 00:07:54.150 --> 00:07:58.093 figure paying job at an IOU. 00:07:59.040 --> 00:08:04.040 So this is not what you, as a new Commission 00:08:07.415 --> 00:08:12.415 start with Commissioner Batjer, President Batjer. 00:08:13.540 --> 00:08:16.513 You can undo this now, fix it. 00:08:17.507 --> 00:08:20.007 (alarm beeps) 00:08:22.640 --> 00:08:24.290 Thank you Dr. Stewart. 00:08:24.290 --> 00:08:26.097 Operator, the next caller please. 00:08:28.420 --> 00:08:30.310 Our next caller is Penn Martin. 00:08:30.310 --> 00:08:31.310 So you may go ahead. 00:08:33.100 --> 00:08:33.933 Thank you. 00:08:33.933 --> 00:08:35.260 My name is Penn Martin. 00:08:35.260 --> 00:08:37.660 I'm with sustainable energy group 00:08:37.660 --> 00:08:39.699 in Grass Valley California. 00:08:39.699 --> 00:08:42.810 I'd like to comment on item five 00:08:42.810 --> 00:08:45.917 and on the agenda and request that it be held. 00:08:45.917 --> 00:08:48.520 We're a small contractor based business. 00:08:48.520 --> 00:08:50.690 We've been around since 2004. 00:08:50.690 --> 00:08:53.242 We only have 15 people in our company. 00:08:53.242 --> 00:08:56.010 I've been doing this for about 11 years 00:08:56.010 --> 00:08:59.920 as a solar designer of these 600 grid type 00:08:59.920 --> 00:09:03.890 of solar electric systems that I've done until this year, 00:09:03.890 --> 00:09:07.267 only six of those had had a battery component. 00:09:07.267 --> 00:09:08.900 If you compare that 00:09:08.900 --> 00:09:13.130 to a period during this fall in two three 00:09:13.130 --> 00:09:16.430 where three fourths of my jobs had a battery component 00:09:16.430 --> 00:09:18.900 you can see the effect that the SGIP program 00:09:18.900 --> 00:09:20.400 has had on our business. 00:09:20.400 --> 00:09:24.277 All of our rebate reservations have had, 00:09:24.277 --> 00:09:26.730 have been equity, resiliency, budget related. 00:09:26.730 --> 00:09:27.870 So we're very excited 00:09:27.870 --> 00:09:31.961 about the opportunity for SGIP not only for our business, 00:09:31.961 --> 00:09:33.290 but primarily for our clients. 00:09:33.290 --> 00:09:37.050 My concern is that the program has been poorly administered 00:09:37.050 --> 00:09:37.970 and it's been chaotic. 00:09:37.970 --> 00:09:40.420 It's had a tremendous impact on our business 00:09:40.420 --> 00:09:41.858 in terms of the hundreds and hundreds 00:09:41.858 --> 00:09:44.950 of man hours that we have devoted 00:09:44.950 --> 00:09:47.455 to this program in terms of paid staff 00:09:47.455 --> 00:09:52.288 and what will happen with the 11 jobs 00:09:52.288 --> 00:09:56.010 that we have pending rebate reservation requests 00:09:56.010 --> 00:10:01.010 which represent $483,000 worth of business for us. 00:10:01.390 --> 00:10:05.520 If the well provision is retroactively rescinded, 00:10:05.520 --> 00:10:08.050 those are all gonna go away. 00:10:08.050 --> 00:10:10.937 That's a severe financial impact to our business. 00:10:10.937 --> 00:10:12.670 A lot of those people are gonna move 00:10:12.670 --> 00:10:15.050 to generators instead of batteries 00:10:15.050 --> 00:10:18.150 because they can't afford the batteries without the SGIP. 00:10:18.150 --> 00:10:20.021 These are middle income households. 00:10:20.021 --> 00:10:23.156 Therefore it's gonna create more fossil fuels. 00:10:23.156 --> 00:10:27.060 I encourage you to hold item five 00:10:27.060 --> 00:10:30.830 so that we can continue the public trust 00:10:30.830 --> 00:10:32.230 in not only our business, 00:10:32.230 --> 00:10:34.700 but also the SGIP program in general, 00:10:34.700 --> 00:10:36.480 because it will severely erode trust 00:10:36.480 --> 00:10:37.850 in our business with our clients. 00:10:37.850 --> 00:10:39.530 If you were send this retroactively. 00:10:39.530 --> 00:10:41.230 Thank you very much for your time. 00:10:44.200 --> 00:10:48.187 Thank you. Operator the next caller please, operator. 00:10:56.080 --> 00:10:58.550 Maybe have the next caller please. 00:10:58.550 --> 00:10:59.383 And I'm sorry. 00:10:59.383 --> 00:11:00.610 Our next caller is Keith Graves. 00:11:00.610 --> 00:11:02.360 Your line is open. 00:11:02.360 --> 00:11:03.193 Thank you. 00:11:03.193 --> 00:11:04.300 Hi, I'm Keith Graves. 00:11:04.300 --> 00:11:05.950 I'm representing plug it in solar. 00:11:05.950 --> 00:11:08.730 This is regarding item number five. 00:11:08.730 --> 00:11:11.000 For the past seven months, 00:11:11.000 --> 00:11:12.700 our team has dedicated the majority 00:11:12.700 --> 00:11:15.233 of our resources toward rolling out the equity 00:11:15.233 --> 00:11:17.963 resilience budget to our rural market. 00:11:18.810 --> 00:11:20.580 Our clients represents 40% 00:11:20.580 --> 00:11:24.640 of all rebate reservations submitted in LA County. 00:11:24.640 --> 00:11:27.960 The majority of our clients are middle income households. 00:11:27.960 --> 00:11:29.780 We spent tens of thousands of dollars 00:11:29.780 --> 00:11:32.660 promoting the equity resilience rebate. 00:11:32.660 --> 00:11:34.280 We have reformed hundreds of jobs, 00:11:34.280 --> 00:11:38.030 site visits to document our client's eligibility. 00:11:38.030 --> 00:11:39.450 We've done our best to navigate an 00:11:39.450 --> 00:11:42.690 extremely difficult rebate submission process. 00:11:42.690 --> 00:11:45.810 Over the past six months, I've heard personally heard 00:11:45.810 --> 00:11:48.250 of stories from property owners of their hardship. 00:11:48.250 --> 00:11:50.377 They've endured the past 12 months 00:11:50.377 --> 00:11:52.453 and are now experienced again. 00:11:53.510 --> 00:11:56.350 PSPS events in rural areas are real problem 00:11:56.350 --> 00:11:58.340 and shouldn't be taken lightly. 00:11:58.340 --> 00:12:01.980 How our outages have lasted over a week in the area by surf. 00:12:01.980 --> 00:12:05.600 Imagine a week with no power, no power to run the AC, 00:12:05.600 --> 00:12:07.680 no power to pump water from your water tank 00:12:07.680 --> 00:12:11.210 to your house, no power to feed your livestock, 00:12:11.210 --> 00:12:13.880 no power to keep your food safe, 00:12:13.880 --> 00:12:16.770 no power to call for help, no power for 00:12:16.770 --> 00:12:18.250 your fire sprinklers, 00:12:18.250 --> 00:12:21.281 no power to energize fire suppression equipment. 00:12:21.281 --> 00:12:23.980 There are people on the call today that had lost everything 00:12:23.980 --> 00:12:27.420 their homes, their dreams, their way of life. 00:12:27.420 --> 00:12:29.580 I convinced that utilities have no idea 00:12:29.580 --> 00:12:32.680 of the impact that these new PSPS events have had 00:12:32.680 --> 00:12:34.110 on their rate payers. 00:12:34.110 --> 00:12:38.020 The equity resilience budget is a brilliant program as is, 00:12:38.020 --> 00:12:40.820 and it's helping adoption rates with both batteries 00:12:40.820 --> 00:12:43.990 and solar, which sort of the entire state. 00:12:43.990 --> 00:12:46.481 To change the program six months into the program 00:12:46.481 --> 00:12:48.330 would only undermine the purpose 00:12:48.330 --> 00:12:49.680 and integrity of the program, 00:12:49.680 --> 00:12:52.970 and then to potentially make matters worse, 00:12:52.970 --> 00:12:54.540 making a possible decision 00:12:54.540 --> 00:12:58.490 retroactive undermine every contractor's effort 00:12:58.490 --> 00:13:01.260 to date threatening thousands 00:13:01.260 --> 00:13:04.180 of existing contractual agreements 00:13:04.180 --> 00:13:06.900 between installers and homeowners. 00:13:06.900 --> 00:13:08.000 I plead with you. 00:13:08.000 --> 00:13:10.070 Please let us do our job. 00:13:10.070 --> 00:13:11.703 Please allow us to help those folks 00:13:11.703 --> 00:13:14.199 who the program was intended to help. 00:13:14.199 --> 00:13:18.770 Please hold on items by further consideration. 00:13:18.770 --> 00:13:19.603 Thank you. 00:13:21.920 --> 00:13:24.030 Thank you, caller. 00:13:24.030 --> 00:13:25.803 The next caller, please operator. 00:13:27.854 --> 00:13:29.720 Our next caller is Matt Collenguard. 00:13:29.720 --> 00:13:30.720 So you may go ahead. 00:13:32.840 --> 00:13:36.700 I speak today on behalf of radius BMT, LLC 00:13:36.700 --> 00:13:38.880 and opposition to agenda item seven, 00:13:38.880 --> 00:13:41.150 the renewable market adjust entire program 00:13:41.150 --> 00:13:44.814 or California's renewable portfolio standard program. 00:13:44.814 --> 00:13:48.090 Brilliant began developing projects for the REMAT program 00:13:48.090 --> 00:13:52.380 in 2016, just a year before the remit was suspended. 00:13:52.380 --> 00:13:55.390 The prospect of reopening RMAT after nearly three years 00:13:55.390 --> 00:13:57.603 of suspension should be exciting for radiant 00:13:57.603 --> 00:14:00.943 at this proposed decision scuttle four years of work. 00:14:01.880 --> 00:14:03.840 The proposed decision is inconsistent 00:14:03.840 --> 00:14:05.800 with Commission precedent. 00:14:05.800 --> 00:14:08.010 The proposed decision premise is 00:14:08.010 --> 00:14:09.790 that the existing REMAT pricing 00:14:09.790 --> 00:14:12.300 mechanism must be modified to comply 00:14:12.300 --> 00:14:14.610 with the winding Creek decision. 00:14:14.610 --> 00:14:17.520 However on August 27, just six weeks ago, 00:14:17.520 --> 00:14:20.090 the Commission found that the REMAT pricing mechanism 00:14:20.090 --> 00:14:21.570 is legal, inappropriate. 00:14:21.570 --> 00:14:25.050 When it is approved, the biomap program 00:14:25.050 --> 00:14:28.500 to find the opposite today threatened biomap, 00:14:28.500 --> 00:14:30.730 a vitally important program. 00:14:30.730 --> 00:14:32.870 The proposed decision says as much 00:14:32.870 --> 00:14:34.507 when it explains why Biomet 00:14:34.507 --> 00:14:37.599 can use the pricing mechanism but remit can't 00:14:37.599 --> 00:14:42.073 because Biomet addresses matters of acute state concern. 00:14:42.073 --> 00:14:45.070 Of course, REMAT also addresses matters 00:14:45.070 --> 00:14:47.090 of acute state concern 00:14:47.090 --> 00:14:48.940 and is required by state law, 00:14:48.940 --> 00:14:50.480 but to the Commission to find today 00:14:50.480 --> 00:14:53.020 that rematch can't use the same pricing mechanism 00:14:53.020 --> 00:14:57.090 as Biomet will threaten both important programs. 00:14:57.090 --> 00:14:58.860 And it will suggest that the objectives 00:14:58.860 --> 00:15:01.933 of REMAT are not matters of acute state concern. 00:15:03.220 --> 00:15:06.080 Further, all but one party commented on a staff proposal 00:15:06.080 --> 00:15:08.650 on Cory green that did not need to be modified 00:15:08.650 --> 00:15:10.520 in order to be reopened. 00:15:10.520 --> 00:15:12.495 It is within the Commissioner's authority. 00:15:12.495 --> 00:15:14.550 Now that the new purpose standard 00:15:14.550 --> 00:15:18.223 off her contract has been approved to simply reopen remao. 00:15:19.070 --> 00:15:20.550 So why are we here today? 00:15:20.550 --> 00:15:23.420 If the Commission could have reopened three months ago, 00:15:23.420 --> 00:15:25.750 once the public contract was approved, 00:15:25.750 --> 00:15:28.500 why did the Commission change course with this proceeding 00:15:28.500 --> 00:15:31.250 and is now considered a drastic changes today 00:15:31.250 --> 00:15:32.610 which may threaten biomap 00:15:32.610 --> 00:15:36.039 but will damage Lynette, please don't note today 00:15:36.039 --> 00:15:38.140 and instead reopened as it was. 00:15:38.140 --> 00:15:40.640 (alarm beeps) 00:15:44.180 --> 00:15:46.803 Thank you. Operator the next caller, please. 00:15:49.190 --> 00:15:52.283 Our next caller is Patrick Kearns, so you may go ahead. 00:15:55.440 --> 00:15:56.350 Good morning. 00:15:56.350 --> 00:15:58.420 My name is Patrick Kearns, 00:15:58.420 --> 00:16:02.097 respectfully address the presidentary Commissioners 00:16:02.097 --> 00:16:06.570 in an attempt to provide an individual rate payers 00:16:06.570 --> 00:16:10.350 perspective after having tried to participate 00:16:10.350 --> 00:16:14.783 in CPUC regulatory actions for the past three years, 00:16:16.897 --> 00:16:20.840 my comments are prompted to make the Commissioners aware 00:16:20.840 --> 00:16:25.840 of their administrative judiciaries actions inhibiting 00:16:26.110 --> 00:16:29.375 and intimidating rate payers participation 00:16:29.375 --> 00:16:31.533 in the Commission's activity. 00:16:32.910 --> 00:16:36.240 I would try to bring previous actions 00:16:36.240 --> 00:16:41.230 by the administrative judiciary that have disrupted 00:16:41.230 --> 00:16:44.283 rate payers complete participation. 00:16:47.290 --> 00:16:50.431 Rate payers are told they are required to sign 00:16:50.431 --> 00:16:55.431 an incomplete unenforceable nondisclosure agreement 00:16:55.527 --> 00:17:00.527 which has just become of interest in current events 00:17:00.733 --> 00:17:05.197 prepared by the regulated IOU, 00:17:05.197 --> 00:17:10.197 but introduce as a required action of the rate payers 00:17:11.470 --> 00:17:15.190 to participate in a settlement conference required 00:17:15.190 --> 00:17:20.190 by the PTED attorney, totally without basis 00:17:23.054 --> 00:17:27.000 in the rules and regulations guiding regulatory processes 00:17:27.000 --> 00:17:32.000 of the CPUC rule 12.6 with standing. 00:17:35.210 --> 00:17:40.210 The IOU is regulating the proceeding actions 00:17:43.230 --> 00:17:48.140 by the CPED rather than the CPED deregulating the IOU. 00:17:50.215 --> 00:17:53.330 The executive director changes a water 00:17:53.330 --> 00:17:55.974 and audit division denial 00:17:55.974 --> 00:18:00.020 of an advice letter that requested release of funds 00:18:00.020 --> 00:18:05.020 for a memorandum account, an account that never existed. 00:18:05.850 --> 00:18:07.320 That was misnamed. 00:18:07.320 --> 00:18:08.910 That was misidentified 00:18:08.910 --> 00:18:10.950 throughout the proceeding that 00:18:10.950 --> 00:18:14.270 granted the non-existent recovery 00:18:14.270 --> 00:18:16.200 from the memorandum accounts 00:18:18.350 --> 00:18:22.010 without terminating the particulars 00:18:22.010 --> 00:18:26.400 that were in the proceeding record. 00:18:26.400 --> 00:18:28.400 Mr. Kearn, could you wrap that please? 00:18:28.400 --> 00:18:30.570 You're beyond your two minute timeframe. 00:18:30.570 --> 00:18:32.160 Could you please say something? 00:18:32.160 --> 00:18:35.080 Okay, well yes, thank you Mrs. President. 00:18:35.080 --> 00:18:38.960 I intend to try to bring these issues 00:18:38.960 --> 00:18:41.240 before the Commissioners 00:18:41.240 --> 00:18:44.440 because I believe the Commissioners maybe unaware 00:18:44.440 --> 00:18:46.740 of the administrative judiciaries action. 00:18:46.740 --> 00:18:50.100 So I will try to come back for future meetings 00:18:50.100 --> 00:18:54.150 and I am supplying these comments to the Governor, 00:18:54.150 --> 00:18:56.720 to the oversight committees of the state 00:18:56.720 --> 00:19:00.570 and the assembly and to the candidates running 00:19:00.570 --> 00:19:02.527 for state office at the present time. 00:19:02.527 --> 00:19:05.450 And I thank you for the privilege of addressing you 00:19:05.450 --> 00:19:09.583 and trying to bring these problems before you. 00:19:10.540 --> 00:19:13.190 Hey, we'll look for that correspondence. Thank you. 00:19:14.200 --> 00:19:15.900 Operator, the next caller, please. 00:19:17.360 --> 00:19:19.920 Our next caller is Pamela Chavez Hudson. 00:19:19.920 --> 00:19:20.770 You may go ahead. 00:19:24.530 --> 00:19:26.160 Yes, I appreciate it. 00:19:26.160 --> 00:19:29.870 Thank you much to the California public utilities Commission 00:19:29.870 --> 00:19:34.450 for giving me the time to act in Aqua Dulcey 00:19:34.450 --> 00:19:38.750 in the antelope Valley middle class disabled one, 00:19:38.750 --> 00:19:40.083 living on social security. 00:19:41.252 --> 00:19:44.974 I rent a lot of my neighbors who are retired people 00:19:44.974 --> 00:19:47.390 who have been, I'm sorry 00:19:47.390 --> 00:19:50.633 this is item number five on the desk. 00:19:51.870 --> 00:19:56.270 We were notified yesterday that our app 00:19:58.995 --> 00:20:03.340 for the batteries, from the Edison, we were being questioned 00:20:03.340 --> 00:20:06.590 and that they were going to offer them tilt income. 00:20:06.590 --> 00:20:11.590 People out of us cannot afford the thousand dollars. 00:20:12.490 --> 00:20:15.485 It cost a Tesla car home. 00:20:15.485 --> 00:20:19.150 Well in very air areas. 00:20:19.150 --> 00:20:22.650 Our animals are dependent on that water. 00:20:22.650 --> 00:20:25.290 And in the case of the many numerous 00:20:25.290 --> 00:20:30.259 dangerous wild that we've been experienced last three years 00:20:30.259 --> 00:20:32.203 that continue work. 00:20:33.380 --> 00:20:37.880 We are often times not given any room for the Hill 00:20:39.090 --> 00:20:43.323 and are unable to save our home. 00:20:44.420 --> 00:20:46.396 You're a home in mint Canyon was 00:20:46.396 --> 00:20:50.785 they were unable to fight this fire. 00:20:50.785 --> 00:20:55.785 Their electricity was turned that 00:20:56.840 --> 00:20:59.980 outage from essence saved their home. 00:20:59.980 --> 00:21:02.803 They had to fight it. 00:21:04.456 --> 00:21:07.113 This is extremely dangerous. 00:21:08.490 --> 00:21:13.300 Our first foray into story, and quite honestly 00:21:13.300 --> 00:21:17.530 police since we're off for this, many of us are asking 00:21:17.530 --> 00:21:20.440 given the opportunity to see if they work for us. 00:21:20.440 --> 00:21:23.220 If they don't, then we probably go further with 00:21:23.220 --> 00:21:27.635 Edwards in the future and our water supply 00:21:27.635 --> 00:21:30.480 which is very, very dangerous. 00:21:30.480 --> 00:21:34.480 We've been off for this six months. 00:21:34.480 --> 00:21:39.480 Now we've much suppliers. 00:21:42.734 --> 00:21:46.563 Please take off lives. 00:21:48.317 --> 00:21:50.817 (alarm beeps) 00:21:52.300 --> 00:21:54.683 Thank you, next caller please. 00:21:56.185 --> 00:21:59.768 Thank you, operator the next caller please. 00:22:00.816 --> 00:22:02.797 Our next caller is from David Lumon, 00:22:02.797 --> 00:22:03.993 you may go ahead, sir. 00:22:05.660 --> 00:22:06.520 Hi, good morning. 00:22:06.520 --> 00:22:08.793 I wanna thank you for the opportunity 00:22:08.793 --> 00:22:10.940 to speak with you this morning. 00:22:10.940 --> 00:22:13.570 I'm a homeowner, I'm in Northern LA County 00:22:13.570 --> 00:22:15.963 in a high fire rural area. 00:22:16.816 --> 00:22:21.816 Last year, our power had gotten shut off on and off 00:22:21.930 --> 00:22:25.500 throughout the season, basically 00:22:25.500 --> 00:22:30.500 for upgrading power lines, infrastructure and power poles. 00:22:32.100 --> 00:22:35.313 And we even had a whole new lines installed. 00:22:36.450 --> 00:22:41.150 So going into last fall, we thought great. 00:22:41.150 --> 00:22:44.769 You know, we have upgraded systems 00:22:44.769 --> 00:22:47.060 you know, we won't have a problem losing electricity. 00:22:47.060 --> 00:22:51.520 Well, ICE never told us that we 00:22:51.520 --> 00:22:56.520 are gonna be having to endure a preemptive power shutoff. 00:22:57.089 --> 00:23:01.680 So our home actually burned down last October, 00:23:01.680 --> 00:23:06.088 October 24th, we're on a Orwell with a water tank 00:23:06.088 --> 00:23:10.140 and we needed electricity to pump basically 00:23:10.140 --> 00:23:13.680 to pump water from the tank to the house. 00:23:13.680 --> 00:23:14.975 I was home that day. 00:23:14.975 --> 00:23:16.603 So on 2:00 in the afternoon, 00:23:17.570 --> 00:23:19.900 I could have helped fight the fire. 00:23:19.900 --> 00:23:21.103 I had no water pressure. 00:23:22.190 --> 00:23:24.033 It was our home was a total loss. 00:23:25.290 --> 00:23:29.630 And I just would like to communicate maybe 00:23:29.630 --> 00:23:33.567 to all of you to try to understand how vital it is 00:23:33.567 --> 00:23:36.960 for us to have power, to have the basics for life. 00:23:36.960 --> 00:23:38.870 We have animals as well. 00:23:38.870 --> 00:23:41.893 So we need water for not only our family, 00:23:41.893 --> 00:23:46.893 but our animals and these power shutoffs can go on for days. 00:23:49.410 --> 00:23:54.410 We were really disappointed that we found this SGIP program 00:23:54.790 --> 00:23:57.320 by accident, us being fire victims. 00:23:57.320 --> 00:24:01.649 We would have hoped to be notified for this benefit 00:24:01.649 --> 00:24:03.963 because we're in the process of rebuilding. 00:24:08.390 --> 00:24:11.190 As of right now, we have a pending reservation. 00:24:11.190 --> 00:24:12.623 We're single income. 00:24:13.536 --> 00:24:14.369 (alarm beeps) 00:24:14.369 --> 00:24:15.556 I'll finish up. 00:24:15.556 --> 00:24:17.520 We're single income, we're middle income 00:24:17.520 --> 00:24:19.920 and we will not be able to afford a system 00:24:19.920 --> 00:24:22.116 like this without assistance. 00:24:22.116 --> 00:24:25.852 Thank you very much. 00:24:25.852 --> 00:24:27.440 Thank you, sir. 00:24:27.440 --> 00:24:29.633 Operator, the next caller, please. 00:24:31.717 --> 00:24:32.790 And before we go to the next caller, 00:24:32.790 --> 00:24:34.980 if you wish to speak during the public comment period, 00:24:34.980 --> 00:24:37.410 please press star one, unmute your phone, 00:24:37.410 --> 00:24:38.760 and clearly provide your name 00:24:38.760 --> 00:24:41.140 and organization when prompted. 00:24:41.140 --> 00:24:42.870 Our next caller is Julie Belkey, 00:24:42.870 --> 00:24:45.020 with a Baker electrical energy. 00:24:45.020 --> 00:24:45.970 You might go ahead. 00:24:47.750 --> 00:24:48.583 Good morning. 00:24:48.583 --> 00:24:50.010 Thank you for the opportunity to speak 00:24:50.010 --> 00:24:51.970 to the Commission today. 00:24:51.970 --> 00:24:54.589 This is in regards to item five on the agenda. 00:24:54.589 --> 00:24:56.570 I'm the SDF administrator 00:24:56.570 --> 00:25:00.156 at Baker electric home energy based in San Diego County. 00:25:00.156 --> 00:25:04.553 And I'd like to request that item five be hel. 00:25:05.430 --> 00:25:08.020 While Baker electric home energy is not new 00:25:08.020 --> 00:25:10.720 to installing energy storage systems. 00:25:10.720 --> 00:25:14.010 We were new to the concept of backing up well pumps 00:25:14.010 --> 00:25:18.461 when the resiliency program was launched earlier this year. 00:25:18.461 --> 00:25:21.630 We invested a significant amount of time 00:25:21.630 --> 00:25:25.970 and resources learning how to properly backup well pumps 00:25:25.970 --> 00:25:27.310 with the different LRAS kind 00:25:27.310 --> 00:25:30.210 of start at voltage that can trip the battery 00:25:30.210 --> 00:25:33.760 in the event of a grid outage or a PSPS. 00:25:33.760 --> 00:25:36.020 Additionally, we invested a great deal 00:25:36.020 --> 00:25:37.277 of marketing resources 00:25:37.277 --> 00:25:39.479 and to targeting our real customers 00:25:39.479 --> 00:25:44.190 that reside in a high fire district that rely 100% 00:25:44.190 --> 00:25:46.723 on well pumps for their homes, water supplies. 00:25:47.610 --> 00:25:51.050 Now through this effort to date, we have provided 00:25:51.050 --> 00:25:54.862 that backup solution to 142 resiliency customers 00:25:54.862 --> 00:25:59.090 with 46 of them being well pump customers. 00:25:59.090 --> 00:26:01.758 And that amounts to about $1.3 million 00:26:01.758 --> 00:26:06.312 with an additional 11 pending well pump reservation 00:26:06.312 --> 00:26:09.078 totalling about $400,000. 00:26:09.078 --> 00:26:12.330 Now this is not an insignificant amount of money 00:26:12.330 --> 00:26:13.743 for our organization. 00:26:14.740 --> 00:26:19.342 Regarding item five, many of our well pump customers 00:26:19.342 --> 00:26:22.536 likely are not gonna fall in the low income category. 00:26:22.536 --> 00:26:25.550 However, they have met all the current resiliency 00:26:25.550 --> 00:26:29.490 requirements of the 2020 S chip handbook. 00:26:29.490 --> 00:26:33.270 Most of them are in a rural location with only the well pump 00:26:33.270 --> 00:26:36.530 as a water resource to provide water to their home 00:26:36.530 --> 00:26:40.290 and any livestock as well as help fight any wildfires. 00:26:40.290 --> 00:26:42.782 Therefore, this program is definitely still essential 00:26:42.782 --> 00:26:44.700 to quality of life. 00:26:44.700 --> 00:26:46.460 Any further changes to the current 00:26:46.460 --> 00:26:49.890 resiliency program will cause significant losses 00:26:49.890 --> 00:26:51.730 to both take our electric home energy 00:26:51.730 --> 00:26:56.090 and our customers who have been so helpful, hopeful, sorry, 00:26:56.090 --> 00:26:59.090 in receiving this life saving benefit. 00:26:59.090 --> 00:27:01.070 Item five would defeat the sole purpose 00:27:01.070 --> 00:27:03.860 of the resiliency incentive as the whole idea 00:27:03.860 --> 00:27:06.190 behind this incentive is to help customers 00:27:06.190 --> 00:27:07.895 who are affected by power shutoffs 00:27:07.895 --> 00:27:11.980 during wildfires or other public safety power shut off. 00:27:11.980 --> 00:27:14.541 Alternatively, it also reduces the grid man 00:27:14.541 --> 00:27:16.820 that will help prevent imminent power outages 00:27:16.820 --> 00:27:18.233 during times of high youth. 00:27:19.240 --> 00:27:23.260 Changes to item five if perhaps given a specific date 00:27:23.260 --> 00:27:26.110 to begin the new requirements we can work with. 00:27:26.110 --> 00:27:28.450 However, set in retroactive changes 00:27:28.450 --> 00:27:33.000 to the program are unfair to all parties involved. 00:27:33.000 --> 00:27:35.590 Now 2020 has already been challenging enough 00:27:35.590 --> 00:27:38.600 without further let downs and disappointments. 00:27:38.600 --> 00:27:41.160 We sincerely asked that item five be held 00:27:41.160 --> 00:27:43.990 or at least the retro active portion 00:27:43.990 --> 00:27:47.600 of the application not be included in this new ruling. 00:27:47.600 --> 00:27:48.433 Thank you. 00:27:51.480 --> 00:27:54.553 Thank you Ms. Silky, operator the next caller please. 00:27:56.891 --> 00:27:59.110 Our next caller is Nathaniel Johnson. 00:27:59.110 --> 00:28:00.210 You may go ahead, sir. 00:28:01.760 --> 00:28:03.730 My name is Nathaniel Johnson. 00:28:03.730 --> 00:28:05.760 I'm the solar advisor for pace Avenue. 00:28:05.760 --> 00:28:09.038 I want to further what a lot of other people have said about 00:28:09.038 --> 00:28:12.899 not instituting item five 00:28:12.899 --> 00:28:17.316 and canceling the SGF equity resiliency rebate 00:28:17.316 --> 00:28:18.990 for well pump customers, 00:28:18.990 --> 00:28:20.350 or at least holding off on the 00:28:20.350 --> 00:28:22.173 retroactively canceling of it. 00:28:23.080 --> 00:28:26.390 A lot of our customers are middle income people 00:28:26.390 --> 00:28:29.140 that can not afford the high cost of batteries 00:28:29.140 --> 00:28:32.698 with climate change and the increase in temperature 00:28:32.698 --> 00:28:37.020 and the increase in power shutoffs during the hottest times 00:28:37.020 --> 00:28:41.540 of year, when people need water and need power 00:28:41.540 --> 00:28:45.450 for refrigeration, for their animals to fight fires 00:28:45.450 --> 00:28:48.094 we personally have customers who've lost their homes 00:28:48.094 --> 00:28:49.432 and these fires 00:28:49.432 --> 00:28:54.010 or at least have fires come dangerously close to their homes 00:28:54.010 --> 00:28:56.819 and need a way to fight off these fires. 00:28:56.819 --> 00:29:01.370 In the future if the Commission wants to change 00:29:01.370 --> 00:29:04.076 the requirements for the S chip program 00:29:04.076 --> 00:29:06.235 and give us as developers notice 00:29:06.235 --> 00:29:09.040 that is something that's fair 00:29:09.040 --> 00:29:12.250 but to retroactively cancel all of these agreements 00:29:12.250 --> 00:29:15.558 with needy customers during this really challenging time, 00:29:15.558 --> 00:29:18.800 I believe it's something that should not be instituted. 00:29:18.800 --> 00:29:20.453 And thank you so much. Bye. 00:29:22.656 --> 00:29:26.947 Thank you Mr. Johnson, operator the next caller please. 00:29:28.310 --> 00:29:31.000 The next caller as David Richard. 00:29:31.000 --> 00:29:32.050 You may go ahead sir. 00:29:35.800 --> 00:29:36.633 Hi, there. 00:29:36.633 --> 00:29:39.260 Thank you so much for the opportunity to speak today. 00:29:39.260 --> 00:29:42.970 My name is David Richard, I'm a co owner of photon brothers. 00:29:42.970 --> 00:29:44.330 We are electrical contractors 00:29:44.330 --> 00:29:46.379 specialize in solar and energy storage. 00:29:46.379 --> 00:29:49.950 I'm here to address item five on the agenda. 00:29:49.950 --> 00:29:53.760 Like many others have mentioned it would be detrimental 00:29:53.760 --> 00:29:55.320 to our small business. 00:29:55.320 --> 00:29:58.240 We have employed 70 people here 00:29:58.240 --> 00:29:59.910 on the central coast of California. 00:29:59.910 --> 00:30:02.816 When I first heard about this program, 00:30:02.816 --> 00:30:06.540 it was the same sign that COVID hit 00:30:06.540 --> 00:30:08.740 starting to shut down our economy. 00:30:08.740 --> 00:30:09.776 And I had choice. 00:30:09.776 --> 00:30:14.776 I had opportunity to okay, down lay off books 00:30:15.340 --> 00:30:17.996 like many of my business owners did 00:30:17.996 --> 00:30:20.900 or pivot and dive into this new opportunity. 00:30:20.900 --> 00:30:23.350 But the SGIP program was offering. 00:30:23.350 --> 00:30:24.860 We went all in. 00:30:24.860 --> 00:30:26.810 We hired 30% more staff. 00:30:26.810 --> 00:30:28.358 We picked up good tape people 00:30:28.358 --> 00:30:31.770 some industries dismantled by this pandemic. 00:30:31.770 --> 00:30:33.690 We risked profits from last year 00:30:33.690 --> 00:30:35.876 pouring time and capital into this opportunity. 00:30:35.876 --> 00:30:38.520 I'm pleading the Commission to hold 00:30:38.520 --> 00:30:39.610 off on making these changes. 00:30:39.610 --> 00:30:42.194 Oh, that's your actively change this program 00:30:42.194 --> 00:30:44.980 is in calculable. 00:30:44.980 --> 00:30:47.260 The amount of time and energy, 00:30:47.260 --> 00:30:50.057 my team staff I've spent on these applications 00:30:50.057 --> 00:30:55.057 over the last year, we have nearly 300 applications 00:30:55.393 --> 00:30:59.840 and half of them would be affected by this program change. 00:30:59.840 --> 00:31:02.840 It would be $5 million in revenue taking away 00:31:02.840 --> 00:31:06.770 from my small business, the customer CRN central coast. 00:31:06.770 --> 00:31:08.210 We're not high income. 00:31:08.210 --> 00:31:09.900 We're living in rural areas. 00:31:09.900 --> 00:31:11.240 Middle-income folks. 00:31:11.240 --> 00:31:13.980 This is one of the most expensive place to live 00:31:13.980 --> 00:31:17.423 with very low income households. 00:31:18.480 --> 00:31:20.359 We have one of the worst income ratios 00:31:20.359 --> 00:31:23.383 in the country compared to cost of living. 00:31:24.270 --> 00:31:26.019 These customers need our phones. 00:31:26.019 --> 00:31:28.910 Our community needs these jobs. 00:31:28.910 --> 00:31:32.090 Please consider us hold off on item five. 00:31:32.090 --> 00:31:35.437 Thank you so much for your time and consideration. 00:31:36.636 --> 00:31:40.136 Thank you, operator next caller, please. 00:31:41.302 --> 00:31:43.030 I made sure there is no collers 00:31:43.030 --> 00:31:45.030 in the public comment line at this time. 00:31:46.571 --> 00:31:49.463 Okay. Thank you operator. 00:31:51.579 --> 00:31:52.577 With no more callers on the line, 00:31:52.577 --> 00:31:54.353 the public comment period is now closed. 00:31:56.280 --> 00:32:00.220 Moving on typically, management reports 00:32:00.220 --> 00:32:01.640 on administrative matters 00:32:01.640 --> 00:32:06.440 or later in the meeting agenda under item 18, deep scholar 00:32:06.440 --> 00:32:09.580 director of efficiency, electrification, and Pecuremen 00:32:09.580 --> 00:32:13.530 for the energy division plans to provide a presentation 00:32:13.530 --> 00:32:17.000 on the root cause analysis of the rotating 00:32:17.000 --> 00:32:21.710 electricity outages that took place in August. 00:32:21.710 --> 00:32:24.900 I'm going to move item 18 up 00:32:24.900 --> 00:32:27.420 and request that director Scala provide 00:32:27.420 --> 00:32:30.830 his management report earlier in the agenda. 00:32:30.830 --> 00:32:33.990 As I mentioned in the day's opening comments, on Tuesday 00:32:33.990 --> 00:32:37.667 the CPC, the California independent system operator 00:32:37.667 --> 00:32:40.570 and the California energy issued 00:32:40.570 --> 00:32:43.020 a preliminary root cause analysis 00:32:43.020 --> 00:32:47.910 of the August, 2020 each storm and rotating outages. 00:32:47.910 --> 00:32:51.920 As director Scala will present in greater detail, 00:32:51.920 --> 00:32:54.230 the joint agency effort found that 00:32:54.230 --> 00:32:57.050 our resource planning targets have not evolved 00:32:57.050 --> 00:33:00.310 to keep pace with the acceleration of climate change 00:33:00.310 --> 00:33:03.010 and related extreme weather events. 00:33:03.010 --> 00:33:06.450 We also recognized the unintended failure 00:33:06.450 --> 00:33:08.970 of certain energy market practices 00:33:08.970 --> 00:33:12.693 during the stress conditions of the period in question. 00:33:12.693 --> 00:33:16.980 The combination of these factors was an extraordinary event 00:33:16.980 --> 00:33:19.356 but it is our responsibility and intent 00:33:19.356 --> 00:33:21.200 the plan for such event, 00:33:21.200 --> 00:33:24.000 which are becoming increasingly common 00:33:24.000 --> 00:33:27.343 and they world rapidly being impacted climate change. 00:33:28.200 --> 00:33:30.230 In our briefing to Governor Newsome, 00:33:30.230 --> 00:33:33.820 my fellow agency leaders, and I recognized a new, 00:33:33.820 --> 00:33:36.950 a shared responsibility for power outages 00:33:36.950 --> 00:33:40.113 many Californians unnecessarily endured. 00:33:41.520 --> 00:33:43.750 The findings of the preliminary analysis 00:33:43.750 --> 00:33:46.220 or this shared responsibility 00:33:46.220 --> 00:33:49.260 and give greater definition to the actions 00:33:49.260 --> 00:33:51.350 that should have been taken to avoid 00:33:51.350 --> 00:33:55.050 or minimize the impact to those we serve. 00:33:55.050 --> 00:33:56.610 The findings and recommendations 00:33:56.610 --> 00:34:00.160 of this preliminary analysis will guide our agencies 00:34:00.160 --> 00:34:03.770 to ensuring the events of August 14th and 15th 00:34:03.770 --> 00:34:05.790 do not reoccur. 00:34:05.790 --> 00:34:07.160 As we move forward, 00:34:07.160 --> 00:34:10.090 I want to be very clear about our direction. 00:34:10.090 --> 00:34:12.260 Our agency's remained unwavering 00:34:12.260 --> 00:34:14.810 in our commitment to clean energy 00:34:14.810 --> 00:34:19.594 and to our climate goals and nothing in our root cause 00:34:19.594 --> 00:34:22.100 analysis leads us to second guess a clean 00:34:22.100 --> 00:34:25.890 reliable and affordable energy future. 00:34:25.890 --> 00:34:27.980 For years, our state has invested 00:34:27.980 --> 00:34:31.290 in research that has charted a path grounded 00:34:31.290 --> 00:34:33.979 in science and technological feasibility. 00:34:33.979 --> 00:34:35.720 We have solutions. 00:34:35.720 --> 00:34:38.710 We must now accelerate the pace 00:34:38.710 --> 00:34:40.810 of their implementation to do, 00:34:40.810 --> 00:34:44.823 to better match the, our changing environment. 00:34:45.810 --> 00:34:47.197 We remain on the right path 00:34:47.197 --> 00:34:50.420 and we will continue to enhance our focus 00:34:50.420 --> 00:34:52.783 on reliability as we move forward. 00:34:53.620 --> 00:34:57.340 To propel us to CPUC we'll initiate expedited 00:34:57.340 --> 00:35:00.430 regulatory initiatives in the coming weeks 00:35:00.430 --> 00:35:02.590 that will strengthen energy reliability 00:35:02.590 --> 00:35:05.310 in the state and avoid reoccurance 00:35:05.310 --> 00:35:08.777 of the August events next year and in future years. 00:35:08.777 --> 00:35:10.490 As I mentioned earlier 00:35:10.490 --> 00:35:14.330 the extreme heat storm in August was an extraordinary 00:35:14.330 --> 00:35:19.330 one in 35 year event will unfortunately become more common. 00:35:21.580 --> 00:35:24.810 It is upon us to adjust our planning, procurement, 00:35:24.810 --> 00:35:28.314 and market policies to meet these changing circumstance, 00:35:28.314 --> 00:35:33.314 circumstances, and ensure that our energy future is clean 00:35:33.350 --> 00:35:37.670 reliable, and affordable for all Californians. 00:35:37.670 --> 00:35:40.318 I look forward to working with my fellow Commissioners, 00:35:40.318 --> 00:35:45.240 our staff our sister agencies, and our stakeholder community 00:35:45.240 --> 00:35:46.803 and realizing these goals. 00:35:48.050 --> 00:35:50.270 Lastly, and very importantly, 00:35:50.270 --> 00:35:52.380 I would like to recognize the staff 00:35:52.380 --> 00:35:54.230 that contributed to this report 00:35:54.230 --> 00:35:56.540 and has worked, each and every one of them 00:35:56.540 --> 00:36:00.570 has worked tirelessly since the 14th and 15th of August. 00:36:00.570 --> 00:36:05.570 And Randolph, Pete Scala, Michelle Peto, Hyper Arno, 00:36:06.620 --> 00:36:11.620 Simone Brent, Mary Michelle Thompson, Jennifer 00:36:11.979 --> 00:36:16.979 April McQueen and my chief of staff Shannon O'Rourke. 00:36:20.240 --> 00:36:22.030 Thank you very much all of you 00:36:22.030 --> 00:36:24.779 for so how hard you have worked 00:36:24.779 --> 00:36:27.233 and for your commitment to public service. 00:36:30.330 --> 00:36:32.910 Now I will ask director Scala 00:36:32.910 --> 00:36:37.123 to begin the presentation, Scala. 00:36:38.258 --> 00:36:39.262 Hello everyone. 00:36:39.262 --> 00:36:40.626 Thank you, President Batjer. 00:36:40.626 --> 00:36:41.680 Can you hear me? 00:36:41.680 --> 00:36:43.578 Yes, you're great. Thank you. 00:36:43.578 --> 00:36:48.190 Okay, super, I'm a energy division director 00:36:48.190 --> 00:36:50.560 of efficiency, electrification and procurement 00:36:50.560 --> 00:36:54.713 and I led the PUC teams work on this joint agency report. 00:36:54.713 --> 00:36:58.683 And is, can you pull the report up please? 00:37:00.040 --> 00:37:01.090 The slide deck rider. 00:37:04.490 --> 00:37:05.323 Thank you. 00:37:08.180 --> 00:37:09.380 Okay. Next slide please. 00:37:13.680 --> 00:37:15.300 The preliminary report finds that 00:37:15.300 --> 00:37:17.330 there were three overarching root causes 00:37:17.330 --> 00:37:18.600 of the rotating outages 00:37:18.600 --> 00:37:21.970 and stress grid conditions during the August heat storm. 00:37:21.970 --> 00:37:24.260 I'll expand on these in the following few slides, 00:37:24.260 --> 00:37:28.230 but in summary first the current reliability 00:37:28.230 --> 00:37:31.220 planning process is not designed to address a one 00:37:31.220 --> 00:37:34.462 in 35 year heat event as president Patrick mentioned. 00:37:34.462 --> 00:37:39.160 Second planning targets in the transition to a reliable, 00:37:39.160 --> 00:37:41.420 clean and affordable energy resource mix 00:37:41.420 --> 00:37:44.490 have not added sufficient resources to meet demand 00:37:44.490 --> 00:37:47.343 in the early evening hours of extremely hot days. 00:37:48.530 --> 00:37:50.200 And third, several practices 00:37:50.200 --> 00:37:53.140 in the energy market exacerbated the supply challenges 00:37:53.140 --> 00:37:54.733 under high stress conditions. 00:37:56.381 --> 00:37:58.420 The report identify several other 00:37:58.420 --> 00:37:59.800 discrete contributing factors 00:37:59.800 --> 00:38:02.473 but these were the three primary causes identified. 00:38:04.910 --> 00:38:06.110 Okay, next slide please. 00:38:08.840 --> 00:38:11.200 This figure illustrates what we mean when we refer 00:38:11.200 --> 00:38:14.348 to the August heat storm as a one and 35 year event, 00:38:14.348 --> 00:38:17.730 it's a, each of the squiggly lines 00:38:17.730 --> 00:38:20.070 on this figure represents the August temperatures 00:38:20.070 --> 00:38:22.033 for one of the past 35 years. 00:38:23.012 --> 00:38:27.830 The orange line depicts the temperatures for this August. 00:38:27.830 --> 00:38:30.530 And as you can see, there's a pretty dramatic outlier. 00:38:31.960 --> 00:38:35.182 The second high to Saugus was in 2015, the dark line. 00:38:35.182 --> 00:38:38.210 And it was well below this, 00:38:38.210 --> 00:38:40.573 these persistent August temperatures. 00:38:43.310 --> 00:38:46.050 California experienced four out of five of the hottest days 00:38:46.050 --> 00:38:48.220 since 1985 during the peak storm 00:38:48.220 --> 00:38:50.300 all within a week of one another. 00:38:50.300 --> 00:38:52.550 And this was not limited to California. 00:38:52.550 --> 00:38:54.940 Extreme record breaking heat was being experienced 00:38:54.940 --> 00:38:57.530 across the Western us, which impacted 00:38:57.530 --> 00:39:00.293 our ability to procure additional resource import. 00:39:02.270 --> 00:39:03.990 Our current processes are planned, 00:39:03.990 --> 00:39:06.460 are based on planning for an average weather year 00:39:06.460 --> 00:39:08.630 with an additional cushion to account for 00:39:08.630 --> 00:39:10.760 relatively higher temperatures 00:39:10.760 --> 00:39:13.820 but not for a sustained extreme West wide heat storm 00:39:13.820 --> 00:39:15.893 as was experienced in August. 00:39:17.130 --> 00:39:20.374 So while the report does not identify a single root cause, 00:39:20.374 --> 00:39:23.500 this extreme event was the underlying condition 00:39:24.532 --> 00:39:26.239 that put the other factors in play, obviously exclude, 00:39:26.239 --> 00:39:31.239 exceeding our current reliability planning criteria. 00:39:31.330 --> 00:39:33.140 And this is also why extraordinary 00:39:33.140 --> 00:39:34.660 efforts were needed to avoid more 00:39:34.660 --> 00:39:36.333 outages the following week. 00:39:39.330 --> 00:39:40.280 Next slide, please. 00:39:45.610 --> 00:39:50.610 Second, the report finds 00:39:50.740 --> 00:39:53.220 that our planning targets have not kept pace 00:39:53.220 --> 00:39:55.470 to procure sufficient resources to meet demand 00:39:55.470 --> 00:39:57.700 in the early evening hours on a hot summer days 00:39:57.700 --> 00:39:59.440 when air conditioner use remains high 00:39:59.440 --> 00:40:02.290 but solar generation both behind and in front of the meter 00:40:02.290 --> 00:40:04.300 is tapering off bath. 00:40:04.300 --> 00:40:08.130 This period is referred to as the net demand peak. 00:40:08.130 --> 00:40:10.937 And this slide illustrates this phenomenon. 00:40:10.937 --> 00:40:15.040 The blue curve in the slide represents the total demand 00:40:15.040 --> 00:40:19.330 across August 14th and 15th and the red curve below 00:40:19.330 --> 00:40:22.260 it represents net demand, which subtracts solar 00:40:22.260 --> 00:40:25.113 and wind generation from the total demand curve. 00:40:26.210 --> 00:40:29.430 The gray vertical slots indicate the time periods 00:40:29.430 --> 00:40:31.430 in which the rotating outages were calm. 00:40:32.276 --> 00:40:34.950 And as you can see, both outages occurred contemporaneously 00:40:34.950 --> 00:40:38.353 with the peak of that bread net demand curve on each day. 00:40:39.392 --> 00:40:43.310 We've certainly been aware of these net demand peak concerns 00:40:44.194 --> 00:40:45.103 in our planning processes. 00:40:46.158 --> 00:40:48.200 For example, we have reduced by approximately 80%, 00:40:48.200 --> 00:40:50.350 the megawatt values of energy 00:40:50.350 --> 00:40:52.020 from intermittent renewable generation 00:40:52.020 --> 00:40:54.250 that can be, that can count 00:40:54.250 --> 00:40:56.803 towards our resource adequacy program requirements. 00:40:57.760 --> 00:40:59.630 But despite these efforts, 00:40:59.630 --> 00:41:02.210 we've not ensured that enough resources are available 00:41:02.210 --> 00:41:04.130 during this net demand peak period 00:41:04.130 --> 00:41:06.050 during extreme heat events 00:41:06.050 --> 00:41:08.050 which are unfortunately likely to increase 00:41:08.050 --> 00:41:09.073 with climate change. 00:41:11.800 --> 00:41:12.750 Next slide, please. 00:41:17.230 --> 00:41:19.140 The third category of root causes is 00:41:19.140 --> 00:41:22.390 that some day ahead market practices mask the full level 00:41:22.390 --> 00:41:26.170 of demand leading to higher amounts of exports. 00:41:26.170 --> 00:41:29.290 This slide depicts the primary market issue 00:41:29.290 --> 00:41:31.010 which is that load serving entities 00:41:31.010 --> 00:41:33.118 or their scheduling coordinators did not did 00:41:33.118 --> 00:41:36.850 or schedule enough load in the day ahead market. 00:41:36.850 --> 00:41:38.610 The yellow step curve 00:41:38.610 --> 00:41:41.830 in this figure represents the cases day ahead 00:41:41.830 --> 00:41:43.293 forecast for these days. 00:41:44.230 --> 00:41:47.538 And the orange line represents actual day of demand. 00:41:47.538 --> 00:41:50.730 And keep in mind that emergency demand response 00:41:50.730 --> 00:41:52.490 was triggered on both of these afternoons. 00:41:52.490 --> 00:41:54.020 So the red curve would have likely been 00:41:54.020 --> 00:41:56.220 at least a thousand megawatts higher 00:41:56.220 --> 00:41:58.853 but for the impact of emergency demand response. 00:42:01.380 --> 00:42:04.120 Now the greatest step curve underneath these red 00:42:04.120 --> 00:42:06.381 and orange lines represents the amount 00:42:06.381 --> 00:42:08.390 of bid load in the day ahead market. 00:42:08.390 --> 00:42:11.270 As you can see, the scheduled and bid load 00:42:11.270 --> 00:42:14.180 on these days was well below the CAISO did forecast 00:42:14.180 --> 00:42:16.670 and even further below the actual demand 00:42:16.670 --> 00:42:19.333 that would have occurred absent emergency DR. 00:42:20.597 --> 00:42:23.250 The amount of good load was also well 00:42:23.250 --> 00:42:25.440 below the available resources that were bid 00:42:25.440 --> 00:42:26.850 into the day head market 00:42:26.850 --> 00:42:29.280 which are not depicted in this figure 00:42:29.280 --> 00:42:30.830 which means that these additional 00:42:30.830 --> 00:42:32.770 bid resources became available 00:42:32.770 --> 00:42:35.310 to be exported to support load that was bid 00:42:35.310 --> 00:42:36.833 in from other balancing areas. 00:42:38.665 --> 00:42:42.350 Now under scheduling load in the day ahead market 00:42:43.440 --> 00:42:44.273 it's not a bad thing under normal conditions. 00:42:44.273 --> 00:42:46.250 It's a reasonable hedge 00:42:46.250 --> 00:42:48.610 against potential higher prices that may be offered 00:42:48.610 --> 00:42:50.319 in the day ahead market 00:42:50.319 --> 00:42:51.735 versus the realtime market, especially given the lack 00:42:51.735 --> 00:42:53.476 of precision each individual post serving entity has 00:42:53.476 --> 00:42:58.030 in knowing what its actual load will be. 00:42:58.030 --> 00:43:02.150 They are, but this is clearly a problem when supply is tight 00:43:02.150 --> 00:43:04.413 and the demand forecast is very high. 00:43:07.820 --> 00:43:09.310 Now two market mechanisms 00:43:09.310 --> 00:43:10.900 that might've counteracted the impact 00:43:10.900 --> 00:43:14.496 of this under scheduled blow did not perform as intended. 00:43:14.496 --> 00:43:17.940 The first was convergence bidding 00:43:17.940 --> 00:43:20.000 within the day ahead market. 00:43:20.000 --> 00:43:22.300 convergence bidding is a financial transaction 00:43:22.300 --> 00:43:24.290 that allows traders to submit bids 00:43:24.290 --> 00:43:27.070 for virtual supply or virtual load. 00:43:27.070 --> 00:43:29.670 And it can help converge or moderate the prices 00:43:29.670 --> 00:43:31.973 between the day ahead and realtime market. 00:43:33.280 --> 00:43:35.380 On days in which demand is being under bid. 00:43:35.380 --> 00:43:37.454 If it was on the 14th and 15th, 00:43:37.454 --> 00:43:42.340 we might expect that convergence busy bidding to result 00:43:42.340 --> 00:43:46.523 in net additional virtual demand bid, 00:43:47.398 --> 00:43:52.398 which would then lead to potentially being met by 00:43:53.998 --> 00:43:56.473 actual real resources. 00:43:56.473 --> 00:44:01.473 And, but instead a virtual supply bid exceeded load 00:44:02.474 --> 00:44:04.020 on these days which maPs and exacerbated 00:44:04.020 --> 00:44:07.000 the real supply Def deficit in the day at market 00:44:07.000 --> 00:44:09.493 that was caused by the under scheduling and load. 00:44:12.180 --> 00:44:14.270 A second market mechanism that did not act 00:44:14.270 --> 00:44:16.853 as intended was in the residents' 00:44:16.853 --> 00:44:18.060 residual unit commitment market 00:44:18.060 --> 00:44:20.010 which is the second step in the day ahead market 00:44:20.010 --> 00:44:22.970 that is intended to ensure that the CAISO can produce 00:44:22.970 --> 00:44:25.733 a reliable operating plan for the next operating day. 00:44:26.620 --> 00:44:28.610 The rocket itself is also a two 00:44:28.610 --> 00:44:30.720 step process that involves a scheduling run 00:44:30.720 --> 00:44:34.380 and a pricing run and a price related feature 00:44:34.380 --> 00:44:36.660 of the CAISO market that is also used in the ROC resulted 00:44:36.660 --> 00:44:41.230 in the scheduling run clearing in the rec market 00:44:41.230 --> 00:44:44.270 without identifying resource shortfall. 00:44:44.270 --> 00:44:46.330 The CAISO has since determined this feature 00:44:46.330 --> 00:44:48.323 is not necessary for the rec market. 00:44:51.896 --> 00:44:54.163 Okay next slide, please. 00:44:58.170 --> 00:45:00.570 Based on these preliminary root causes, 00:45:00.570 --> 00:45:02.520 the report recommends a number of actions 00:45:02.520 --> 00:45:04.790 that should be considered in both the near term 00:45:04.790 --> 00:45:07.840 and in the mid to longer term to improve the liability 00:45:07.840 --> 00:45:08.673 in the future. 00:45:11.740 --> 00:45:12.600 In the near term, 00:45:12.600 --> 00:45:15.236 we need to first off ensure that the 00:45:15.236 --> 00:45:16.886 2,400 megawatts of resources that 00:45:17.816 --> 00:45:19.020 the Commission has already directed to be procured 00:45:19.020 --> 00:45:20.899 and are scheduled to be online 00:45:20.899 --> 00:45:23.163 for next summer, actually come online by next summer. 00:45:24.040 --> 00:45:26.340 Second, the report recommends 00:45:26.340 --> 00:45:29.160 that the Commission commenced an expedited regulatory 00:45:29.160 --> 00:45:31.450 and procurement process to develop 00:45:31.450 --> 00:45:35.960 additional resources that could be on line by 2021. 00:45:35.960 --> 00:45:37.830 And that a similar effort be coordinated 00:45:37.830 --> 00:45:41.040 with non CQC jurisdictional load serving entities 00:45:41.040 --> 00:45:43.140 within the CAISO balancing authority area. 00:45:45.680 --> 00:45:49.664 Third, and this recommend station extends into, 00:45:49.664 --> 00:45:53.430 you know, begins now, but it extends forward into the mid 00:45:54.876 --> 00:45:55.880 and longer term is a recommendation to update resource 00:45:55.880 --> 00:45:59.276 and reliability planning targets to better account 00:45:59.276 --> 00:46:01.200 for extreme weather events 00:46:01.200 --> 00:46:04.533 and to improve reliability planning for the net demand peak. 00:46:06.470 --> 00:46:07.867 The final set of near term recommendations 00:46:07.867 --> 00:46:11.352 in the report address enhancements to the type 00:46:11.352 --> 00:46:14.040 of market practices identified in the previous slide 00:46:14.040 --> 00:46:17.130 and for also for CAISO to make changes to the rule 00:46:17.130 --> 00:46:19.217 to ensure that resources that are paid to be available 00:46:19.217 --> 00:46:22.890 during peak summer months are not approved to go offline 00:46:22.890 --> 00:46:25.393 unless their owners provide replacement capacity 00:46:25.393 --> 00:46:26.870 which would have resulted 00:46:26.870 --> 00:46:29.470 in 400 megawatts of additional capacity this August. 00:46:32.130 --> 00:46:33.080 Next slide, please. 00:46:37.730 --> 00:46:41.132 Moving to a mid and longer term recommendations. 00:46:41.132 --> 00:46:43.920 Starting on the left hand column, 00:46:43.920 --> 00:46:46.140 as mentioned in the previous slide report 00:46:46.140 --> 00:46:49.280 recommends the process of updating resource 00:46:49.280 --> 00:46:51.280 and reliability planning targets to better account 00:46:51.280 --> 00:46:54.060 for climate change and then net demand peak. 00:46:54.060 --> 00:46:56.640 And this process would begin soon 00:46:56.640 --> 00:46:59.053 but continue into the mid and longer term. 00:47:00.550 --> 00:47:03.353 The other items in this column implicate IRP, 00:47:03.353 --> 00:47:05.100 and relate to longer term transmission 00:47:05.100 --> 00:47:07.400 and resource development planning. 00:47:07.400 --> 00:47:10.556 We would engage in with the CEC, the CAISO 00:47:10.556 --> 00:47:14.173 and other neighboring States to meet SB 100 goals. 00:47:18.354 --> 00:47:21.200 Items on the right side of the slide 00:47:22.930 --> 00:47:23.763 will be led by other agencies. 00:47:23.763 --> 00:47:25.330 The CAISO would continue to make improvements 00:47:25.330 --> 00:47:27.820 to its market processes based on lessons learned 00:47:27.820 --> 00:47:30.870 from the August and September and September heat event. 00:47:30.870 --> 00:47:34.670 And beginning in 2020 into 2021 integrated 00:47:34.670 --> 00:47:37.750 energy policy report the CDC plans to develop 00:47:37.750 --> 00:47:40.130 a statewide summer assessment 00:47:40.130 --> 00:47:42.860 in coordination with the CQC, the CAISO 00:47:42.860 --> 00:47:44.910 and neighboring States to provide 00:47:44.910 --> 00:47:46.080 additional information to 00:47:46.080 --> 00:47:48.130 support California's reliability efforts. 00:47:53.390 --> 00:47:54.340 Next slide, please. 00:47:59.100 --> 00:48:01.240 Finally, this is a preliminary analysis 00:48:01.240 --> 00:48:03.730 and this slide identifies remaining steps 00:48:03.730 --> 00:48:05.760 towards procuring producing 00:48:05.760 --> 00:48:09.150 rather a final version of this report. (clears throat) 00:48:09.150 --> 00:48:11.130 First, we intend to review the performance 00:48:11.130 --> 00:48:13.990 of resources during the heat SCORM. 00:48:13.990 --> 00:48:16.040 And in particular, we're interested in how 00:48:16.040 --> 00:48:18.490 individual resources under RA contact, 00:48:18.490 --> 00:48:20.660 contract prefer formed, 00:48:20.660 --> 00:48:23.480 have demand response perform in particular 00:48:23.480 --> 00:48:26.700 in how resources that don't appear in the cases supply plans 00:48:26.700 --> 00:48:29.880 in her instead credited for the load, serving entities 00:48:29.880 --> 00:48:31.603 already obligations, perform. 00:48:33.430 --> 00:48:36.690 Understanding how resources under RA contract reform 00:48:36.690 --> 00:48:39.110 is an important one for the obvious reason 00:48:39.110 --> 00:48:41.710 that if resource we're bidding less energy 00:48:41.710 --> 00:48:44.290 into the day ahead markets than their RA commitment 00:48:44.290 --> 00:48:46.674 we need to understand why that is happening 00:48:46.674 --> 00:48:48.620 and address it. 00:48:48.620 --> 00:48:49.990 But it is also important 00:48:49.990 --> 00:48:53.040 because some of these resources may be bidding more energy 00:48:53.040 --> 00:48:54.120 into the day ahead markets 00:48:54.120 --> 00:48:56.370 than their monthly RA commitments. 00:48:56.370 --> 00:48:58.032 And the current day ahead 00:48:58.032 --> 00:48:59.060 market rules treat bids from resources 00:48:59.060 --> 00:49:01.649 in excess of their RA commitments to be non RA energy bids 00:49:01.649 --> 00:49:06.649 and different market rules apply to non RA and RA energy. 00:49:08.603 --> 00:49:11.500 Second, we intend to analyze how different load serving 00:49:11.500 --> 00:49:14.907 energies scheduling coordinators scheduled load 00:49:14.907 --> 00:49:16.220 and the day ahead market 00:49:16.220 --> 00:49:20.253 as compared with those LLCs forecast, that peak demand. 00:49:24.890 --> 00:49:28.033 Third, we intend to look at how communications 00:49:32.420 --> 00:49:35.220 to utility distribution companies were implemented 00:49:35.220 --> 00:49:36.820 with the goal of improving those 00:49:37.769 --> 00:49:39.260 communications to ensure appropriate responses 00:49:39.260 --> 00:49:43.563 during future critical reliability events for improved. 00:49:46.510 --> 00:49:47.493 Next slide. 00:49:52.540 --> 00:49:53.795 That concludes my presentation 00:49:53.795 --> 00:49:56.180 on the preliminary root cause analysis. 00:49:56.180 --> 00:49:58.080 And I'd be happy to take any questions 00:49:58.959 --> 00:50:01.463 Pete, thank you so much. 00:50:04.114 --> 00:50:05.350 And I personally on behalf of my fellow Commissioners, 00:50:05.350 --> 00:50:08.780 want to thank you for all of the hard work 00:50:08.780 --> 00:50:10.150 that you and your team has put 00:50:10.150 --> 00:50:15.150 into this root cause analysis since literally the 14th 00:50:15.757 --> 00:50:19.853 and 15th of August, late nights, many weekends, 00:50:19.853 --> 00:50:23.350 you work through everything 00:50:23.350 --> 00:50:25.600 and I do so appreciate it Pete. 00:50:25.600 --> 00:50:27.100 And thank you. 00:50:27.100 --> 00:50:29.863 Commissioners, do you have any questions of Pete. 00:50:31.510 --> 00:50:32.610 President Batjer? 00:50:32.610 --> 00:50:35.360 I actually just wanted to add a quick text also 00:50:35.360 --> 00:50:39.730 to ALJ Julie Fitch, who did some sort of last minute review 00:50:39.730 --> 00:50:42.713 and editing of the document as well. 00:50:42.713 --> 00:50:44.930 So we really appreciated that 00:50:44.930 --> 00:50:49.350 and I cannot echo President Batjer's 00:50:49.350 --> 00:50:52.470 thanks to Pete and add Randolph enough. 00:50:52.470 --> 00:50:54.520 I mean they really worked around the clock 00:50:54.520 --> 00:50:58.200 with the other agencies putting together this report. 00:50:58.200 --> 00:50:59.350 So I will add that. 00:50:59.350 --> 00:51:00.590 Thanks as well. 00:51:00.590 --> 00:51:03.109 Thank you very much for your comment about Julie Fitch. 00:51:03.109 --> 00:51:08.109 Julie jumped in with her immense skills and experience 00:51:08.673 --> 00:51:12.050 and helped us out tremendously. 00:51:12.050 --> 00:51:15.560 And thank you for mentioning that Commissioner Randolph. 00:51:15.560 --> 00:51:18.770 And Randolph is thankfully 00:51:18.770 --> 00:51:21.527 taking a little bit of time off in a vacation after working 00:51:21.527 --> 00:51:26.193 as you said tirelessly for the last gosh a month and a half. 00:51:27.840 --> 00:51:29.190 I think there were some other hands. 00:51:29.190 --> 00:51:31.330 Yes, Mr. Sherman 00:51:31.330 --> 00:51:32.870 and then we'll go to a Commissioner Reshova. 00:51:34.929 --> 00:51:37.500 Yes, thank you President Batjer and Pete, 00:51:37.500 --> 00:51:38.840 and to the whole team 00:51:38.840 --> 00:51:42.929 for really essential deep dive on tremendous work essential 00:51:42.929 --> 00:51:47.929 because we need to plan, prepare, build so forth, 00:51:49.737 --> 00:51:54.737 to prevent this from happening in the future. 00:51:57.592 --> 00:52:01.907 But my question is, is the CAISO, is a team 00:52:01.907 --> 00:52:06.907 also reaching out to the other balancing authority, 00:52:07.410 --> 00:52:12.410 such as BANT, B-A-N-T, and others that are separate, 00:52:13.560 --> 00:52:15.540 but also are connected 00:52:15.540 --> 00:52:18.370 through these like, you know, executives EIN. 00:52:18.370 --> 00:52:19.970 So are they reaching out to the other 00:52:19.970 --> 00:52:24.290 balancing authorities to also see 00:52:24.290 --> 00:52:27.890 if there are any other insights to be garnered 00:52:27.890 --> 00:52:32.890 from these others that did not experience the blackout 00:52:37.010 --> 00:52:40.570 I expect they will, don't want to speak for them. 00:52:40.570 --> 00:52:44.170 But I think also as part of the CDC plan 00:52:44.170 --> 00:52:47.010 summer assessments, they do intend to engage 00:52:47.010 --> 00:52:50.593 with other balancing neighboring balancing authority areas. 00:52:53.610 --> 00:52:54.520 Okay. Thank you. 00:52:54.520 --> 00:52:57.800 I think it'd be important to see what their perspectives are 00:52:57.800 --> 00:52:59.620 on what happened. 00:52:59.620 --> 00:53:01.270 Thank you again. 00:53:01.270 --> 00:53:05.350 The whole thing they've mentioned that, so I'm at 00:53:05.350 --> 00:53:07.320 with PETA we've we can't speak for them, 00:53:07.320 --> 00:53:12.320 but I'm uncertain it's already been mentioned by the CDC. 00:53:14.530 --> 00:53:15.580 Commissioner Reshova. 00:53:16.970 --> 00:53:19.167 I want to also thank you President Batjer 00:53:19.167 --> 00:53:21.910 and Commissioner Randolph for being the point people 00:53:21.910 --> 00:53:24.040 around the clock and helping us steer 00:53:24.991 --> 00:53:27.511 through these very difficult times 00:53:27.511 --> 00:53:28.951 with such so much stress on our grid, 00:53:28.951 --> 00:53:32.180 Pete, that, I have a question 00:53:32.180 --> 00:53:34.580 for you that you may or may not have answered already 00:53:34.580 --> 00:53:37.653 but I want to just draw it out. 00:53:37.653 --> 00:53:41.720 You said that the, this event was one in, 00:53:41.720 --> 00:53:45.340 a one in 35 weather events 00:53:45.340 --> 00:53:47.850 and we need to adjust our planning horizons. 00:53:47.850 --> 00:53:48.683 And you also talked 00:53:48.683 --> 00:53:51.520 about the resources that are already committed 00:53:51.520 --> 00:53:54.160 for 2021 and the need to accelerate those 00:53:54.160 --> 00:53:57.912 and look at other resources that can be brought 00:53:57.912 --> 00:53:59.572 online very quickly. 00:53:59.572 --> 00:54:02.630 When we authorize procurement 00:54:02.630 --> 00:54:05.060 of those 2020 resources, we were still operating 00:54:05.060 --> 00:54:07.420 under the old planning assumptions 00:54:07.420 --> 00:54:11.603 that you identified at the start do we, so my, 00:54:13.313 --> 00:54:15.530 I guess my question is if those resources come online 00:54:15.530 --> 00:54:18.970 will they be enough or do they need to be reconsidered 00:54:18.970 --> 00:54:21.875 in light of the one in 35 horizon or the horizon 00:54:21.875 --> 00:54:26.530 of extreme heat storms and climate events 00:54:26.530 --> 00:54:28.610 that were is an out now the new reality 00:54:28.610 --> 00:54:30.573 that is August made clear. 00:54:32.240 --> 00:54:35.820 So yeah, the second near term recommendation 00:54:35.820 --> 00:54:40.820 was to open expedited proceedings to look at 00:54:42.090 --> 00:54:43.986 you know, planning and procurement 00:54:43.986 --> 00:54:47.350 of additional resources for this summer. 00:54:47.350 --> 00:54:52.350 So that would presumably entail looking 00:54:52.960 --> 00:54:54.300 at a different standard 00:54:54.300 --> 00:54:57.233 and also looking at what resources could realistically 00:54:57.233 --> 00:55:02.233 be brought online and support a similar event that's coming. 00:55:02.900 --> 00:55:05.368 If one were to occur this coming summer. 00:55:05.368 --> 00:55:07.667 Thank you. 00:55:12.274 --> 00:55:13.610 President Batjer, thank you. 00:55:13.610 --> 00:55:15.610 Yes, Commissioner Rechtschaffen? 00:55:16.520 --> 00:55:18.730 Well, thanks again to everyone and Pete, 00:55:18.730 --> 00:55:20.730 a tremendous amount of work. 00:55:20.730 --> 00:55:23.870 And I know you've probably had to answer the same question 00:55:23.870 --> 00:55:26.820 about a hundred times from all of us 00:55:26.820 --> 00:55:31.650 and everyone else said you helped understand this situation. 00:55:31.650 --> 00:55:34.275 And to everyone really well put this together. 00:55:34.275 --> 00:55:38.060 I was most surprised 00:55:38.060 --> 00:55:41.120 and also somewhat releaved in a weird way. 00:55:41.120 --> 00:55:43.792 Relieved in the sense that we can really 00:55:43.792 --> 00:55:47.185 provide some mitigation here quickly 00:55:47.185 --> 00:55:51.420 with this data that you described on the day ahead. 00:55:51.420 --> 00:55:54.409 And what's actually under contract 00:55:54.409 --> 00:55:58.223 versus what's it ahead in the day ahead. 00:55:59.091 --> 00:56:02.767 So I mean, the amount of megawatts here 00:56:02.767 --> 00:56:07.767 3,300 3,400 is such an opportunity to see it 00:56:09.090 --> 00:56:10.840 in the positive way. 00:56:10.840 --> 00:56:13.260 And I just wonder if we're gonna be looking at, 00:56:13.260 --> 00:56:15.055 or if you may already know 00:56:15.055 --> 00:56:20.055 of these resources that we have 00:56:20.090 --> 00:56:24.291 under contract under to meet our RA for the LSE. 00:56:24.291 --> 00:56:28.720 Are we looking at some of the contract dynamics 00:56:30.014 --> 00:56:33.290 and things like, you know totally in agreement are the LOC? 00:56:34.330 --> 00:56:35.530 I assume the majority 00:56:35.530 --> 00:56:38.896 of the cause of this is that they're not being dispatched 00:56:38.896 --> 00:56:39.993 by the LSPs anymore. 00:56:39.993 --> 00:56:41.890 And just kind of just missing the link 00:56:41.890 --> 00:56:46.410 of how we're guarding against this. 00:56:46.410 --> 00:56:49.190 And I wonder if in our RA maybe this a question 00:56:49.190 --> 00:56:50.389 for you Commissioner 00:56:50.389 --> 00:56:53.610 but assuming the RA proceeding, we're gonna be looking 00:56:53.610 --> 00:56:56.392 at this and the opportunity for us to ensure 00:56:56.392 --> 00:57:01.392 that everything as simple as, you know, being more cautious 00:57:02.900 --> 00:57:07.170 and requiring some of this bidding to happen 00:57:07.170 --> 00:57:10.790 on the day ahead, anyway, that's kind of a big 00:57:10.790 --> 00:57:15.190 it seems like a very, a huge opportunity 00:57:15.190 --> 00:57:18.533 for us to mitigate the problem for next year. 00:57:19.476 --> 00:57:23.863 Well, I guess I would say a couple things about that. 00:57:24.715 --> 00:57:26.450 One is I mentioned in the next steps is 00:57:26.450 --> 00:57:28.750 that we do intend to get a better sense 00:57:28.750 --> 00:57:31.540 of how each of the resources under our contract 00:57:31.540 --> 00:57:34.595 performed in the realtime market. 00:57:34.595 --> 00:57:39.595 I'd also say though that that data, you know 00:57:41.450 --> 00:57:46.068 a fair amount of that was resolved in the real time market. 00:57:46.068 --> 00:57:50.110 And I think that if you look at the net imports 00:57:50.110 --> 00:57:54.310 on those days, they are terribly different 00:57:54.310 --> 00:57:57.970 than the amount of shown RA importance for those days. 00:57:57.970 --> 00:58:01.669 So I don't, I think they're, you know, operationally there 00:58:01.669 --> 00:58:02.720 these are going to provide some improvements 00:58:02.720 --> 00:58:06.710 but I don't think that we, this is going to increase 00:58:06.710 --> 00:58:11.710 the amount of, you know to the tune of 3080 Watts 00:58:14.411 --> 00:58:19.150 the Delta there, between what we did get on those real time 00:58:19.150 --> 00:58:21.963 in real time versus what was shown from RA. 00:58:24.709 --> 00:58:29.709 Yeah, I'll just, and I'll just add to that is sort of 00:58:32.010 --> 00:58:37.010 that dynamic really exacerbated sort of a last minute kind 00:58:37.875 --> 00:58:42.583 of effect of the 14th and the 15th into the extent 00:58:44.654 --> 00:58:49.654 that, you know, we sort of realize that, you know 00:58:52.860 --> 00:58:57.690 shedding load was going to be necessary, you know 00:58:57.690 --> 00:59:01.716 much later than we should have as a result of some 00:59:01.716 --> 00:59:04.650 of this sort of lack of clarity as a result 00:59:04.650 --> 00:59:05.920 of the market conditions. 00:59:05.920 --> 00:59:09.953 But in the, in suing days, we still 00:59:09.953 --> 00:59:14.953 experienced significant shortfalls. 00:59:15.050 --> 00:59:17.470 You know, even though at that point kind 00:59:17.470 --> 00:59:19.760 of the market conditions, weren't the issue anymore. 00:59:19.760 --> 00:59:21.675 So I think it's important kind of recognize 00:59:21.675 --> 00:59:26.532 that those factors interplay together 00:59:26.532 --> 00:59:30.080 but addressing the market issues doesn't necessarily 00:59:30.080 --> 00:59:31.970 create new resources. 00:59:31.970 --> 00:59:35.810 Right, you know, so we're gonna need to be able to access 00:59:35.810 --> 00:59:38.493 more megawatts just regardless. 00:59:45.310 --> 00:59:48.300 Are there any other comments or questions 00:59:48.300 --> 00:59:49.450 from the Commissioners? 00:59:51.080 --> 00:59:55.770 Okay. Seeing none, Pete, again, my many, many things to you 00:59:55.770 --> 00:59:58.870 and the energy division team. 00:59:58.870 --> 00:59:59.800 Thank you so much. 00:59:59.800 --> 01:00:01.950 And thanks for this presentation. Well done 01:00:02.790 --> 01:00:03.700 Thank you very much. 01:00:03.700 --> 01:00:06.860 And yeah, it was a really great team of hardworking folks 01:00:06.860 --> 01:00:07.900 in energy division 01:00:07.900 --> 01:00:12.480 and in the other agencies that pulled this off, take care. 01:00:12.480 --> 01:00:13.680 Yes, it really was. 01:00:13.680 --> 01:00:15.370 Thank you so much, Pete. 01:00:15.370 --> 01:00:17.663 Okay. We will move on into the agenda. 01:00:19.351 --> 01:00:24.351 First we will, I will take up the changes to the agenda. 01:00:24.930 --> 01:00:28.270 And these are the changes to today's agenda, 01:00:28.270 --> 01:00:33.270 item five we'll, we will take up in the regular agenda. 01:00:36.900 --> 01:00:41.900 Item 11 will be held to the November 5th, 01:00:42.770 --> 01:00:45.280 2020 Commission meeting. 01:00:45.280 --> 01:00:50.280 Item 19 we will take up today in the consent agenda. 01:00:54.921 --> 01:00:59.921 So we will now take up the consent items. 01:01:00.510 --> 01:01:02.003 Is there a motion? 01:01:04.780 --> 01:01:06.250 Been moved. 01:01:06.250 --> 01:01:07.083 It's been moved 01:01:07.083 --> 01:01:10.460 and I'm gonna assume one of those so will be a second 01:01:10.460 --> 01:01:12.193 and moved and seconded. 01:01:13.540 --> 01:01:16.130 I'll, we'll be agenda clerk please call the role 01:01:16.130 --> 01:01:18.463 for the consent agenda. 01:01:19.892 --> 01:01:20.911 Commissioner Shiloma. 01:01:20.911 --> 01:01:21.744 Aye. 01:01:23.010 --> 01:01:25.080 Commissioner Rechtschaffen. 01:01:25.080 --> 01:01:26.520 Aye. 01:01:26.520 --> 01:01:27.986 Commissioner Randolph. 01:01:27.986 --> 01:01:28.819 Yes. 01:01:30.014 --> 01:01:31.409 Commissioner Rechtschaffen. 01:01:31.409 --> 01:01:33.075 Yes. 01:01:33.075 --> 01:01:34.654 President Batjer. 01:01:34.654 --> 01:01:37.140 Yes. Thank you all. 01:01:37.140 --> 01:01:41.040 The consent agenda has passed unanimously. 01:01:41.040 --> 01:01:43.840 Commisioner Rechtschaffen would like to make remarks. 01:01:43.840 --> 01:01:46.620 I believe on item four, the Pacific gas 01:01:46.620 --> 01:01:49.793 and electric company for a mobile application pilot program, 01:01:51.730 --> 01:01:53.440 Thank you President Batjer. 01:01:53.440 --> 01:01:56.850 In this decision, we launched a pilot program 01:01:56.850 --> 01:02:00.640 for PG&E to provide its customers who live 01:02:00.640 --> 01:02:04.010 in high fire threat areas. 01:02:04.010 --> 01:02:07.520 The ability to identify safety risks 01:02:07.520 --> 01:02:11.711 via a new smart phone mobile app. 01:02:11.711 --> 01:02:15.270 And if you recall we directed PG&E to create 01:02:15.270 --> 01:02:17.770 this new safety tool 01:02:17.770 --> 01:02:22.570 as one of many remedial actions we ordered 01:02:22.570 --> 01:02:26.810 in the enforcement actions, we took against PG&E 01:02:26.810 --> 01:02:31.810 for its role in the catastrophic wildfires of 2017 and 2018. 01:02:32.142 --> 01:02:37.142 And the basic concept hopefully is simple and important. 01:02:39.913 --> 01:02:41.812 It's to crowd source potential safety risks 01:02:41.812 --> 01:02:46.812 by allowing individuals to send photos with GIS information 01:02:47.553 --> 01:02:52.553 of PG&E utility poles and other infrastructure 01:02:53.030 --> 01:02:57.870 to PG&E, and to have them analyze what they receive. 01:02:57.870 --> 01:03:01.130 These reports will be publicly available 01:03:01.130 --> 01:03:04.893 including any steps PG&E takes in response consistent 01:03:04.893 --> 01:03:09.143 with our confidentiality rules. 01:03:09.990 --> 01:03:13.136 The app will be available within 10 months 01:03:13.136 --> 01:03:18.136 to customers and tier two and tier three high fire 30 areas. 01:03:18.660 --> 01:03:20.220 It will also be available 01:03:20.220 --> 01:03:24.550 to Cal fire entities that PG&E operates 01:03:24.550 --> 01:03:27.520 under joint pole agreements 01:03:27.520 --> 01:03:31.560 and also vegetation management contractors 01:03:31.560 --> 01:03:35.028 with the very important proviso that PG&E 01:03:35.028 --> 01:03:37.569 in its training materials 01:03:37.569 --> 01:03:38.893 and otherwise we'll make clear 01:03:38.893 --> 01:03:40.930 that the use of the app is discretionary. 01:03:40.930 --> 01:03:43.900 It's not to detract from the primary activities 01:03:43.900 --> 01:03:46.091 that the vegetation management contractors 01:03:46.091 --> 01:03:48.830 and it must be used consistent 01:03:48.830 --> 01:03:53.020 with safety protocols and common sense. 01:03:53.020 --> 01:03:55.054 That's very important limitation. 01:03:55.054 --> 01:03:57.988 This is funded entirely by PG&E shareholders. 01:03:57.988 --> 01:04:00.710 The decision requires a third 01:04:00.710 --> 01:04:05.114 party evaluated to assess how effective the app is 01:04:05.114 --> 01:04:10.080 and whether this app could also have broader benefits such 01:04:10.080 --> 01:04:14.180 as improving customer engagement by PG&E. 01:04:14.180 --> 01:04:15.180 I think the way to think 01:04:15.180 --> 01:04:18.837 about this is we are trying to leverage more 01:04:18.837 --> 01:04:22.600 and more advanced technology to improve public safety 01:04:22.600 --> 01:04:25.730 especially in the wildfire sphere. 01:04:25.730 --> 01:04:28.154 And this hopefully will be an important learning opportunity 01:04:28.154 --> 01:04:30.408 in that effort. 01:04:30.408 --> 01:04:34.363 I want to thank ALJ DeAngelis 01:04:35.729 --> 01:04:37.273 and Jeremy Bateson, our safety policy division 01:04:37.273 --> 01:04:41.080 for their work, my advisors, Alex Grenada, and Shawn Simon. 01:04:41.080 --> 01:04:44.220 And I also want to thank the broadband Institute 01:04:44.220 --> 01:04:48.489 of California at Santa Clara university led 01:04:48.489 --> 01:04:51.469 by former PUC Commissioner Conference Savivall 01:04:51.469 --> 01:04:53.760 for her strong engagement in this proceeding, 01:04:53.760 --> 01:04:57.197 as well as the public advocate's office, thank you. 01:04:59.871 --> 01:05:01.530 Thank you, Commissioner Rechtschaffen. 01:05:01.530 --> 01:05:05.056 Commissioner Shiloma I believe you would like to speak 01:05:05.056 --> 01:05:06.880 to item 19 which is the appointment 01:05:06.880 --> 01:05:09.718 of public members to the low income oversight board. 01:05:09.718 --> 01:05:11.560 Yes. Thank you. 01:05:11.560 --> 01:05:12.990 Thank you, President Batjer. 01:05:12.990 --> 01:05:15.220 I just wanted to thank on the Commissioners 01:05:15.220 --> 01:05:19.958 for your vote to reappoint Lord (mumbles) 01:05:19.958 --> 01:05:22.710 to the low income oversight board Lopez who goes 01:05:22.710 --> 01:05:26.170 by LIMU works as a community organizer 01:05:26.170 --> 01:05:29.770 in Fresno County with the Dolores Huerta foundation. 01:05:29.770 --> 01:05:34.360 And she was first appointed the LLB in 2018. 01:05:34.360 --> 01:05:39.050 Her experience as a advocate for women, 01:05:39.050 --> 01:05:42.650 single parent families and immigrants is invaluable. 01:05:42.650 --> 01:05:47.403 Her voice and her contributions are essential on the LLB. 01:05:48.280 --> 01:05:51.693 And I look forward to continuing to work with her 01:05:51.693 --> 01:05:55.123 coming years, thank you. 01:05:56.540 --> 01:05:58.240 Thank you, Commissioner Shiroma. 01:05:59.220 --> 01:06:04.033 Okay. We will now move on to the regular agenda items. 01:06:04.889 --> 01:06:07.700 The first item number five, 01:06:07.700 --> 01:06:10.050 the self generation incentive program 01:06:10.050 --> 01:06:11.850 equity, resiliency, budget 01:06:11.850 --> 01:06:15.994 electric wealth pump customer eligibility requirements. 01:06:15.994 --> 01:06:20.150 This item is for discussion after the discussion 01:06:20.150 --> 01:06:23.370 the Commission may vote to hold this item 01:06:23.370 --> 01:06:28.370 to the October 22nd, 2020 voting meeting. 01:06:28.940 --> 01:06:33.053 I'm opening item up for discussion. 01:06:34.630 --> 01:06:36.180 Yes. Commissioner Shrek Chavez. 01:06:38.420 --> 01:06:39.263 Thank you. 01:06:41.152 --> 01:06:43.420 I'd like to get some background about the decision 01:06:43.420 --> 01:06:46.080 and some of the comments we've heard, 01:06:46.080 --> 01:06:47.900 including from the half dozen 01:06:48.756 --> 01:06:50.356 or more speakers who came today. 01:06:51.805 --> 01:06:52.951 Thank you very much for your participation, 01:06:52.951 --> 01:06:56.230 outlined different options we had considered 01:06:56.230 --> 01:07:00.020 and at other Commissioners may be interested in, 01:07:00.020 --> 01:07:01.353 but if you'll indulge me, 01:07:01.353 --> 01:07:04.580 I just want to spend a few minutes giving background 01:07:05.557 --> 01:07:08.660 about the program and some of the details about the funding 01:07:08.660 --> 01:07:10.880 which are a little bit detailed 01:07:12.310 --> 01:07:16.860 but the basic part of this decision is it revises 01:07:16.860 --> 01:07:21.860 and clarifies eligibility requirements 01:07:22.202 --> 01:07:25.850 for the S chip program for customers that rely 01:07:25.850 --> 01:07:30.460 on an electric pump well for their water supplies. 01:07:30.460 --> 01:07:35.090 And this is part of the equity resilience budget program. 01:07:35.090 --> 01:07:37.170 Now, just to remind folks, 01:07:37.170 --> 01:07:40.420 that program was established in January 01:07:40.420 --> 01:07:43.600 and its very clear focus was 01:07:43.600 --> 01:07:46.810 on helping the most vulnerable customers 01:07:46.810 --> 01:07:49.990 and communities in high fire, 30 areas 01:07:50.922 --> 01:07:55.000 and ones that had been affected by multiple PSPS events. 01:07:55.000 --> 01:07:58.762 And in particular we targeted medical baseline customers, 01:07:58.762 --> 01:08:01.440 low income customers, 01:08:01.440 --> 01:08:05.570 and critical care facilities in disadvantaged communities. 01:08:05.570 --> 01:08:09.040 We know from many of our proceedings and a lot of the work 01:08:09.040 --> 01:08:11.260 in this area, there are literally tens of thousands 01:08:11.260 --> 01:08:13.530 of medically vulnerable customers 01:08:13.530 --> 01:08:16.010 in these high fire threat areas. 01:08:16.010 --> 01:08:20.450 Most importantly the program provides very, very 01:08:20.450 --> 01:08:23.270 generous subsidies to these customers, 01:08:23.270 --> 01:08:26.780 essentially covering the full cost 01:08:26.780 --> 01:08:29.503 of batteries for customers in these areas. 01:08:30.540 --> 01:08:35.540 We allocated $612 million to the equity resilience budget. 01:08:37.364 --> 01:08:40.753 The last between now and 2024. 01:08:41.687 --> 01:08:44.770 There's been a great deal of interest in the program. 01:08:44.770 --> 01:08:46.990 I'm very happy to report. 01:08:46.990 --> 01:08:50.086 And in fact the demand is so great at PG&E 01:08:50.086 --> 01:08:53.353 already has allocated all of its funding, 01:08:54.260 --> 01:08:56.426 approximately $270 million. 01:08:56.426 --> 01:08:59.110 And it already has a waiting list 01:08:59.110 --> 01:09:04.103 of 674 projects totaling $42 million. 01:09:05.260 --> 01:09:07.980 The other, I have seen very significant interest 01:09:07.980 --> 01:09:11.670 not as much Edison has about already allocated 01:09:11.670 --> 01:09:14.330 about 50% of its program 01:09:14.330 --> 01:09:18.200 San Diego, gas and electric, almost 60% of its program. 01:09:18.200 --> 01:09:21.840 It's a program so Cal gas lasts only about 01:09:21.840 --> 01:09:24.964 70% of the program. 01:09:24.964 --> 01:09:28.100 And just as an aside, you may recall 01:09:28.100 --> 01:09:32.650 that when we adopted the program, there were some who said 01:09:32.650 --> 01:09:35.700 we wouldn't have sufficient demand for the program. 01:09:35.700 --> 01:09:37.925 It wasn't targeted the right people. 01:09:37.925 --> 01:09:41.210 That's, that hasn't been the case at all. 01:09:41.210 --> 01:09:44.845 Now as one of the elements of the program, 01:09:44.845 --> 01:09:49.250 we said, customers who rely on electricity 01:09:49.250 --> 01:09:52.020 to operate their wealth funds are eligible. 01:09:52.020 --> 01:09:53.600 We've been very surprised 01:09:53.600 --> 01:09:56.900 by how many applications have come from this segment. 01:09:56.900 --> 01:09:59.250 And really the extent to which it's eating 01:09:59.250 --> 01:10:02.602 into the budget for other customers. 01:10:02.602 --> 01:10:07.490 As of last, as of August, well, applications were half 01:10:07.490 --> 01:10:11.750 of all equity resilience applications 01:10:11.750 --> 01:10:15.880 while medically vulnerable customers were only about 30%. 01:10:15.880 --> 01:10:19.646 For PG&E in particular, remember there's 270 million, 01:10:19.646 --> 01:10:22.500 97 million of its budget has already gone 01:10:22.500 --> 01:10:24.847 to well installations. 01:10:24.847 --> 01:10:29.847 There are now pending about $75 million in additional well 01:10:30.890 --> 01:10:34.190 applications that don't have a confirmed reservation. 01:10:34.190 --> 01:10:36.450 And of course, I'll come back to that, 01:10:36.450 --> 01:10:41.360 but of that 75 million pending 60 million 01:10:41.360 --> 01:10:42.980 is filed with PG&E. 01:10:44.270 --> 01:10:47.460 So that means that if we were to approve 01:10:47.460 --> 01:10:50.347 all pending well applications 01:10:50.347 --> 01:10:54.440 about 157 million of PG&E's needs total budget 01:10:54.440 --> 01:10:59.440 of $270 million, about 60% would go to residential 01:10:59.610 --> 01:11:04.610 well customers, quite people could have, 01:11:05.465 --> 01:11:06.544 why is that happening? 01:11:06.544 --> 01:11:08.890 We're not totally sure, 01:11:08.890 --> 01:11:12.326 but apparently it's easier for developers to identify 01:11:12.326 --> 01:11:14.062 and target customers with wealth 01:11:14.062 --> 01:11:17.290 and medically vulnerable customers. 01:11:17.290 --> 01:11:20.840 Also utilities have not even started 01:11:20.840 --> 01:11:24.081 their outreach programs that we approved, designed to get 01:11:24.081 --> 01:11:28.390 to attract medically vulnerable customers. 01:11:28.390 --> 01:11:31.710 It's also possible that some developers may not be aware 01:11:31.710 --> 01:11:36.140 of the program we have in PG&E's territory that pays half 01:11:36.140 --> 01:11:38.010 of the incentive monies upfront 01:11:38.010 --> 01:11:40.080 for lower income customers who could 01:11:40.080 --> 01:11:42.313 not otherwise afford the system. 01:11:44.080 --> 01:11:46.300 Now, with that background over the summer 01:11:46.300 --> 01:11:48.200 we clarified in a letter that well 01:11:48.200 --> 01:11:51.562 customers are only eligible for the program 01:11:51.562 --> 01:11:55.210 if they rely on a well at their primary residence 01:11:55.210 --> 01:11:56.670 can't be a second home. 01:11:56.670 --> 01:11:59.360 We were seeing some second home residence. 01:11:59.360 --> 01:12:03.900 This decision puts in place an income limitation 01:12:03.900 --> 01:12:07.160 so that well customers must be low income 01:12:07.160 --> 01:12:10.220 for the full again it's very generous subsidy 01:12:10.220 --> 01:12:12.960 which is applying the same limit that applies 01:12:12.960 --> 01:12:15.693 to most of our other customers. 01:12:16.530 --> 01:12:19.500 And now the part that's been more controversial 01:12:19.500 --> 01:12:23.001 the decision provides the rule will apply 01:12:23.001 --> 01:12:26.764 to all customers who don't have confirmed reservations 01:12:26.764 --> 01:12:30.293 as of the date, the Commission adopts the decision. 01:12:31.520 --> 01:12:35.323 Right now there are about 2,184 applications 01:12:37.878 --> 01:12:41.310 for wells who do not have confirmed reservation. 01:12:41.310 --> 01:12:43.870 So they that's the potential scope 01:12:43.870 --> 01:12:46.550 if the decision would it be adopted today. 01:12:46.550 --> 01:12:49.177 Now it's important to keep in mind again, 01:12:49.177 --> 01:12:53.740 what the decision says there are income limitations. 01:12:53.740 --> 01:12:55.847 The customers can still qualify 01:12:55.847 --> 01:12:58.950 for the equity resiliency budget 01:12:58.950 --> 01:13:03.950 if they're low income, they would get the full deep subsidy. 01:13:03.990 --> 01:13:05.520 And we provide additional time 01:13:05.520 --> 01:13:08.060 if necessary for them to do that. 01:13:08.060 --> 01:13:10.520 Customers can also still qualify 01:13:10.520 --> 01:13:13.140 for other residential SGF incentives. 01:13:13.140 --> 01:13:17.080 It's just not as generous as the equity resilience budget 01:13:18.037 --> 01:13:23.037 but some customers honestly will not qualify as low income. 01:13:23.347 --> 01:13:24.870 And we heard from some 01:13:24.870 --> 01:13:27.620 of the companies who have been working with them today. 01:13:29.150 --> 01:13:30.800 Almost all the parties supported 01:13:30.800 --> 01:13:33.460 this new rule with one exception, 01:13:33.460 --> 01:13:38.460 but to storage, the sole pals California, solar 01:13:38.960 --> 01:13:41.490 and storage association, and Sunrun 01:13:41.490 --> 01:13:44.210 in particular raise concerned about its effective date. 01:13:44.210 --> 01:13:47.120 And you heard from some of some developers 01:13:47.120 --> 01:13:50.303 and other companies today who also raised similar concerns 01:13:50.303 --> 01:13:53.890 and they argued it's not fair to apply this rule 01:13:53.890 --> 01:13:58.010 to customers who applied for the program, 01:13:58.010 --> 01:14:00.440 but still have reservations program 01:14:00.440 --> 01:14:02.770 still have reservations pending. 01:14:02.770 --> 01:14:04.620 They accompanied extended time 01:14:04.620 --> 01:14:08.023 and expense nodding up well customers. 01:14:11.020 --> 01:14:14.890 Sunrun said, we should only apply this decisions 01:14:14.890 --> 01:14:18.350 to applications that were submitted 01:14:18.350 --> 01:14:21.730 as going forward from the effective date of this decision. 01:14:21.730 --> 01:14:23.333 Whenever we adopted a decision. 01:14:25.137 --> 01:14:27.763 The storage association said 01:14:27.763 --> 01:14:32.071 we should only apply it to applications a week 01:14:32.071 --> 01:14:35.570 after the date that the proposed decision was issued. 01:14:35.570 --> 01:14:39.540 They suggested that would be a potential middle ground. 01:14:39.540 --> 01:14:42.480 So I don't wanna minimize in any way the concerns 01:14:42.480 --> 01:14:44.760 that they've raised about fairness, 01:14:44.760 --> 01:14:48.620 the desire for certainty for developers. 01:14:48.620 --> 01:14:51.579 And we thought very very hard about 01:14:51.579 --> 01:14:55.163 what to do in this situation. 01:14:56.000 --> 01:15:00.010 In the end I think those considerations were outweighed 01:15:00.010 --> 01:15:04.810 by the need to preserve the very limited funds available 01:15:04.810 --> 01:15:06.580 for customers with the greatest needs. 01:15:06.580 --> 01:15:09.420 And this was the recommendation we got 01:15:09.420 --> 01:15:10.520 from our energy division. 01:15:10.520 --> 01:15:14.370 They saw a lot of these funds not being available 01:15:14.370 --> 01:15:16.810 to customers with the greatest need. 01:15:16.810 --> 01:15:18.040 And I'll get some specifics 01:15:18.040 --> 01:15:20.680 about that budget implications in just one second, 01:15:20.680 --> 01:15:25.480 as I wrap up, I do wanna say just one word about 01:15:25.480 --> 01:15:29.090 expectations and of developers and others. 01:15:29.090 --> 01:15:33.320 At least since August 17th 01:15:33.320 --> 01:15:37.620 when I shouldn't assign Commissioner ruling 01:15:37.620 --> 01:15:41.761 with a scoping memo that raised the possibility 01:15:41.761 --> 01:15:46.761 that we would impose this rule, developers have been 01:15:47.200 --> 01:15:50.920 on notice about the possibility of this rules change. 01:15:50.920 --> 01:15:52.880 And since then there's been over 01:15:52.880 --> 01:15:55.840 1100 applications submitted. 01:15:55.840 --> 01:15:58.360 Now there were applications obviously submitted 01:15:58.360 --> 01:16:00.620 before that, but at least at that point, 01:16:00.620 --> 01:16:03.650 it was noticed that this might happen. 01:16:03.650 --> 01:16:05.178 So one of the budget implications 01:16:05.178 --> 01:16:08.224 of going forward one way or the other, 01:16:08.224 --> 01:16:13.213 but as I noted there are about close to 2200 01:16:13.213 --> 01:16:17.240 2184 applications for Wells that had been submitted 01:16:17.240 --> 01:16:20.370 for which there is not not a confirmed reservation. 01:16:20.370 --> 01:16:22.463 That totals about $75 million. 01:16:23.411 --> 01:16:26.005 If we would have approved that decision today, 01:16:26.005 --> 01:16:29.390 we would free up about $75 million 01:16:29.390 --> 01:16:33.350 in the incentives against 60 million would go to PG&E. 01:16:34.240 --> 01:16:38.710 For PG&E that means we would be able to fund $34 million 01:16:39.596 --> 01:16:44.307 for medically vulnerable customers, critical care facilities 01:16:44.307 --> 01:16:49.190 and others, plus $8 million in well applications. 01:16:49.190 --> 01:16:52.700 If the applications are for low income customers. 01:16:52.700 --> 01:16:55.317 So we could meet everyone on the waiting list, 01:16:55.317 --> 01:16:57.767 but that's if we were to approve the decision 01:16:57.767 --> 01:17:00.760 that's proposed today if we take the complete 01:17:00.760 --> 01:17:04.470 opposite approach, the one that Sunrun suggested 01:17:04.470 --> 01:17:08.797 and allowed all applications submitted as a data decision 01:17:08.797 --> 01:17:12.730 if we want it adopted today to be approved without regard 01:17:12.730 --> 01:17:17.180 to income limits, it would be $75 million less available 01:17:17.180 --> 01:17:19.400 for medically vulnerable 01:17:19.400 --> 01:17:23.840 and other equity resilience customers. 01:17:23.840 --> 01:17:26.180 There are possibilities in between that 01:17:26.180 --> 01:17:28.240 we considered, as I mentioned 01:17:28.240 --> 01:17:33.240 we, the storage industry suggested a middle date 01:17:33.284 --> 01:17:38.260 some compromise, so we could consider funding 01:17:38.260 --> 01:17:39.790 all applications submitted 01:17:39.790 --> 01:17:42.781 as of the August 17th sculpting plan. 01:17:42.781 --> 01:17:46.241 At first phase the possibility this rules change 01:17:46.241 --> 01:17:50.370 all applications submitted August 24th, 01:17:50.370 --> 01:17:53.270 one week after the scoping memo 01:17:53.270 --> 01:17:56.890 or all applications submitted by September 3rd, 01:17:56.890 --> 01:18:01.233 the date of the proposed decision, that's the Cal storage. 01:18:02.917 --> 01:18:05.100 So and storage association compromise. 01:18:05.100 --> 01:18:06.640 All of those scenarios however, 01:18:06.640 --> 01:18:09.310 would mean taking a very significant bite 01:18:09.310 --> 01:18:11.163 out of the budget, other customers. 01:18:12.357 --> 01:18:13.440 And we can talk about the math, 01:18:13.440 --> 01:18:16.640 but basically it would mean 47 million 01:18:16.640 --> 01:18:19.823 or two $59 million less that wouldn't be available 01:18:19.823 --> 01:18:21.703 to those other customers. 01:18:23.304 --> 01:18:25.982 And ultimately we concluded that 01:18:25.982 --> 01:18:30.380 that was a lot of money that would not be available. 01:18:30.380 --> 01:18:32.880 I do want to just say one other word 01:18:32.880 --> 01:18:34.810 about the expectations of developers. 01:18:34.810 --> 01:18:37.790 Again, I don't wanna minimize them in any way. 01:18:37.790 --> 01:18:39.867 They're very important to the success of a program 01:18:39.867 --> 01:18:43.502 and to creating a market for storage, 01:18:43.502 --> 01:18:47.385 but in the case of PG&E, at least here 01:18:47.385 --> 01:18:50.950 if we were to go ahead and grandfather in many 01:18:50.950 --> 01:18:55.950 or most of the well applications as some scenarios would do 01:18:56.423 --> 01:18:58.780 this means less funding will be available 01:18:58.780 --> 01:18:59.927 for medically vulnerable 01:18:59.927 --> 01:19:03.600 and the other customers that have already submitted 01:19:03.600 --> 01:19:06.840 applications and are currently on the waiting list. 01:19:06.840 --> 01:19:09.160 So in practical terms, there are developers. 01:19:09.160 --> 01:19:10.530 We spend substantial time 01:19:10.530 --> 01:19:13.460 and effort to submit those applications as well. 01:19:13.460 --> 01:19:15.650 They will not receive funding. 01:19:15.650 --> 01:19:18.680 So really whichever way we go some number 01:19:18.680 --> 01:19:23.340 of projects that involve time and efforts by developers 01:19:24.711 --> 01:19:27.930 and created customer expectations will not receive funding. 01:19:27.930 --> 01:19:30.490 It could either customers who are medically vulnerable 01:19:30.490 --> 01:19:32.681 or low income and critical facilities 01:19:32.681 --> 01:19:35.690 or customers with electric, well pump Wells. 01:19:35.690 --> 01:19:37.250 We're not low income. 01:19:37.250 --> 01:19:39.240 That's just an unfortunate outcome of the fact 01:19:39.240 --> 01:19:43.280 that we do not have enough money to meet the needs easier. 01:19:43.280 --> 01:19:47.670 And then I do wanna just tell you again, one final note 01:19:47.670 --> 01:19:51.140 that our decision required marketing and outreach 01:19:51.140 --> 01:19:54.433 to medically vulnerable customers, this program. 01:19:55.878 --> 01:19:57.887 And PG&E only began this program a couple 01:19:57.887 --> 01:20:00.300 of months ago at the end of July 01:20:00.300 --> 01:20:03.673 the other utilities haven't even started their outreach yet. 01:20:04.630 --> 01:20:07.120 I think it would be an unfortunate result 01:20:07.120 --> 01:20:10.040 if by the time this outreach began 01:20:10.040 --> 01:20:13.490 and they could have an impact, there would be no funds left 01:20:13.490 --> 01:20:16.350 for this group of most of this customer. 01:20:16.350 --> 01:20:18.390 So thank you for letting me go 01:20:18.390 --> 01:20:21.590 through that lengthy discussion and background. 01:20:21.590 --> 01:20:25.183 And now I'm open to questions and discussion. 01:20:26.720 --> 01:20:30.400 That was extremely helpful Commissioner Rechtschaffen. 01:20:30.400 --> 01:20:34.538 I'm hoping those who called me on item five remained 01:20:34.538 --> 01:20:37.604 involved and engaged on the line 01:20:37.604 --> 01:20:41.000 so they could hear your explanation. 01:20:41.000 --> 01:20:44.040 Are there other comments or questions on item five? 01:20:44.040 --> 01:20:47.023 Yes. Commissioner Randolph, yes. 01:20:49.594 --> 01:20:51.841 Thank you Commissioner Rechtschaffen. 01:20:51.841 --> 01:20:56.540 And I wanted to put this on the regular agenda 01:20:56.540 --> 01:20:58.620 and discuss the possibility of a hole 01:20:58.620 --> 01:21:03.620 because I am concerned about the impact 01:21:04.064 --> 01:21:08.950 as it relates to applicants who thought that they qualified 01:21:08.950 --> 01:21:11.250 for a program because they didn't qualify 01:21:11.250 --> 01:21:14.023 at the time they were submitting their application. 01:21:15.821 --> 01:21:20.821 I agree wholeheartedly with the policy going forward. 01:21:23.985 --> 01:21:28.985 I agree that we should have put tighter controls 01:21:29.550 --> 01:21:31.930 on this and should have recognized the possibility 01:21:31.930 --> 01:21:36.930 that this category might dwarf other categories 01:21:37.300 --> 01:21:38.743 in the equity budget. 01:21:41.180 --> 01:21:45.070 But I would ask that we consider some of these 01:21:45.070 --> 01:21:47.200 middle ground proposals 01:21:47.200 --> 01:21:50.760 because as you mentioned in your scoping memo, 01:21:50.760 --> 01:21:54.110 that attached to the memo from energy division 01:21:54.110 --> 01:21:57.580 on August 17th it did indicate that the Commission 01:21:57.580 --> 01:22:01.010 had concerned about this and made a recommendation 01:22:01.010 --> 01:22:05.881 that the, we consider applying this rule 01:22:05.881 --> 01:22:10.881 as of the date of that memo, which was provided to parties 01:22:11.330 --> 01:22:12.520 on August 17th. 01:22:14.329 --> 01:22:17.259 So I think even at that time, we recognized 01:22:17.259 --> 01:22:21.160 that having it applied to retroactively 01:22:21.160 --> 01:22:24.513 to all applications which would be a concern. 01:22:25.730 --> 01:22:29.076 And so I would like the Commission to 01:22:29.076 --> 01:22:32.781 consider holding this item and potentially consider 01:22:32.781 --> 01:22:34.980 some of the other options such 01:22:34.980 --> 01:22:39.980 as the August 17th date or the date of mailing of the PD. 01:22:43.450 --> 01:22:46.633 Is that a motion Commissioner? 01:22:50.320 --> 01:22:53.760 Well, I guess I would say 01:22:53.760 --> 01:22:55.400 I'm happy to have more discussion. 01:22:55.400 --> 01:22:57.423 Yeah, sure And then we 01:22:57.423 --> 01:22:59.265 could talk about. 01:22:59.265 --> 01:23:00.541 Thank you. 01:23:00.541 --> 01:23:01.670 Okay, before we do that, then I'm sorry. 01:23:01.670 --> 01:23:03.220 'Cause I didn't see any other hands 01:23:03.220 --> 01:23:05.990 that Martha was your hand up too, I'm sorry. 01:23:05.990 --> 01:23:07.762 Commissioner Guzman Aceves. 01:23:07.762 --> 01:23:10.277 (indistinct) 01:23:10.277 --> 01:23:11.617 Thank you Commissioner Rechtschaffen 01:23:21.488 --> 01:23:23.367 for all your work on this. 01:23:23.367 --> 01:23:24.780 I think this falls 01:23:24.780 --> 01:23:29.340 into this very difficult category that we've, 01:23:29.340 --> 01:23:32.480 we are faced with often in terms of priorities. 01:23:32.480 --> 01:23:36.720 And I think we're where I'm falling 01:23:36.720 --> 01:23:40.700 on is really in support of the PD as it stands in. 01:23:40.700 --> 01:23:43.873 And let me just explain a couple of reasons why, 01:23:44.779 --> 01:23:48.830 as you've mentioned, there is a finite budget here 01:23:48.830 --> 01:23:53.640 and we've particularly with the history of this program. 01:23:53.640 --> 01:23:57.520 We try to reform it to be more equitable 01:23:57.520 --> 01:24:02.330 and in this very difficult situation 01:24:02.330 --> 01:24:05.240 because of the needs throughout the state 01:24:05.240 --> 01:24:09.800 and needing to be committed to the issue of equity. 01:24:09.800 --> 01:24:13.710 And that means that we are prioritizing low income 01:24:13.710 --> 01:24:17.408 households, medically vulnerable households 01:24:17.408 --> 01:24:22.408 over households that have more disposable income 01:24:22.560 --> 01:24:24.570 and more resources. 01:24:24.570 --> 01:24:27.630 And that's the difficult decision. 01:24:27.630 --> 01:24:32.090 I think the other big concern that 01:24:32.090 --> 01:24:34.400 I wanted to share that has come about 01:24:34.400 --> 01:24:39.400 with all the very heartwarming situations that we heard 01:24:40.450 --> 01:24:42.180 about this morning even, 01:24:42.180 --> 01:24:44.380 and the hundreds of emails that we got 01:24:44.380 --> 01:24:47.687 as a result of this proposed change 01:24:47.687 --> 01:24:52.687 is a very distinct one that I'm gonna raise now 01:24:53.380 --> 01:24:54.750 but we can come back to, 01:24:54.750 --> 01:24:57.306 and it does have an overlap with this issue of 01:24:57.306 --> 01:24:59.810 prioritizing these targeted communities. 01:24:59.810 --> 01:25:04.810 But unfortunately what one of my advisors looked into some 01:25:05.140 --> 01:25:09.288 of these contractor and salespeople that emailed us 01:25:09.288 --> 01:25:13.420 and called, and she looked at 45 of them. 01:25:13.420 --> 01:25:14.380 So it wasn't all of them, 01:25:14.380 --> 01:25:18.546 but she went and looked into 45 of these companies. 01:25:18.546 --> 01:25:23.546 Only five of them were registered with the CSLB. 01:25:23.843 --> 01:25:26.900 And the big concern I have is just 01:25:26.900 --> 01:25:29.730 this big red flag is going up in my head right now 01:25:29.730 --> 01:25:32.700 that people are going out to these households. 01:25:32.700 --> 01:25:35.870 I don't know what they're telling them. 01:25:35.870 --> 01:25:38.720 There was a pace caller that called in this morning, 01:25:38.720 --> 01:25:41.260 I'm particularly it was like five red flags 01:25:41.260 --> 01:25:42.110 that go up there. 01:25:42.970 --> 01:25:45.573 Are they charging these customers? 01:25:46.510 --> 01:25:49.250 Are they selling these storage systems 01:25:49.250 --> 01:25:52.490 for $40,000 when the incentive is supposed to pay 01:25:52.490 --> 01:25:55.770 for it all that much lower than that? 01:25:55.770 --> 01:25:57.101 I don't know. 01:25:57.101 --> 01:26:02.000 I'm very concerned that another big issue 01:26:02.000 --> 01:26:04.310 that we're not guarding for with these incentive funds 01:26:04.310 --> 01:26:08.020 is one that we did not do with the NEM program. 01:26:08.020 --> 01:26:11.604 And that is ensuring that these are licensed contractors 01:26:11.604 --> 01:26:16.160 with their sales agents that are registered 01:26:16.160 --> 01:26:18.646 and that we can ensure good workmanship, 01:26:18.646 --> 01:26:23.610 good safety, and certainly no fraud. 01:26:23.610 --> 01:26:28.450 So as we look at how we move hope forward here 01:26:28.450 --> 01:26:31.240 there's certainly the issue on the equity budget, 01:26:31.240 --> 01:26:32.730 which I'm fully supportive of, 01:26:32.730 --> 01:26:35.780 prioritizing the most vulnerable among us. 01:26:35.780 --> 01:26:40.426 I'm also asking that in that same concern 01:26:40.426 --> 01:26:43.970 and this applies for all customers that we're ensuring 01:26:43.970 --> 01:26:46.608 that these contractors are registered 01:26:46.608 --> 01:26:49.440 and that their sales agents are registered 01:26:49.440 --> 01:26:53.510 which is the current law that's existing law. 01:26:53.510 --> 01:26:57.810 And the fact that we could not find 90% of the folks 01:26:57.810 --> 01:27:01.400 that we looked into and that's of course anecdotal 01:27:04.772 --> 01:27:05.765 is very concerning. 01:27:05.765 --> 01:27:09.550 So there's a, there's this question of how we move forward 01:27:09.550 --> 01:27:13.100 in transforming ourselves in this clean energy economy. 01:27:13.100 --> 01:27:15.210 Are we gonna dedicate ourselves to ensuring 01:27:15.210 --> 01:27:18.925 that the most vulnerable come in this transition with us 01:27:18.925 --> 01:27:22.007 and are we gonna protect all customers 01:27:22.007 --> 01:27:24.800 from any sort of fraudulent activity? 01:27:24.800 --> 01:27:28.627 These are the first one is captured in this PD 01:27:28.627 --> 01:27:31.890 and the second one we need to continue to work on. 01:27:31.890 --> 01:27:33.083 So thank you very much. 01:27:34.270 --> 01:27:36.180 Thank you, Commissioner GGzman Aceves. 01:27:36.180 --> 01:27:37.583 Commissioner Shiloma. 01:27:38.950 --> 01:27:40.063 Yes. Thank you. 01:27:40.900 --> 01:27:43.850 Well, first of all, thank you to Commissioner Rechtschaffen 01:27:44.867 --> 01:27:49.867 and his team for all of the continuing efforts on SFEF. 01:27:51.107 --> 01:27:56.107 I support Commissioner Randolph's request to 01:27:56.280 --> 01:27:59.989 hold this PD core one meeting 01:27:59.989 --> 01:28:04.989 to evaluate the effectiveness state. 01:28:08.300 --> 01:28:13.300 I'm one who is very uneasy about any prospect 01:28:13.974 --> 01:28:18.974 of changing the rules in the decision that we voted out. 01:28:22.550 --> 01:28:27.550 We laid out the criteria process money, qualifications, 01:28:28.440 --> 01:28:30.100 rules, and so forth. 01:28:30.100 --> 01:28:34.113 And to now go back and say, oops, 01:28:37.790 --> 01:28:41.326 for all those applications that are pending 01:28:41.326 --> 01:28:43.500 we're gonna change the criteria 01:28:43.500 --> 01:28:47.420 and mold it just from a general perspective 01:28:48.490 --> 01:28:50.470 I'm very uncomfortable with that. 01:28:50.470 --> 01:28:54.740 And in my regulatory experience, you know 01:28:54.740 --> 01:28:59.180 at the aerosol in the board, in my regulatory experience 01:28:59.180 --> 01:29:03.440 in my application of statute regulations laws, 01:29:03.440 --> 01:29:06.420 and so forth at the agricultural labor relations board 01:29:06.420 --> 01:29:09.330 this is just not something that something that is 01:29:15.910 --> 01:29:20.210 well in my perspective. 01:29:20.210 --> 01:29:24.520 So to do such a thing that, I mean, it's almost 01:29:24.520 --> 01:29:29.520 as though it has to be really big overriding considerations. 01:29:29.640 --> 01:29:32.563 And I have questions on that Rechtschaffen. 01:29:36.485 --> 01:29:39.430 First of all, we evidently made a serious omission 01:29:39.430 --> 01:29:44.350 in not applying or not including or restricting the monies 01:29:44.350 --> 01:29:47.940 to the income eligibility requirements. 01:29:47.940 --> 01:29:52.730 And I think we do have a duty to correct this 01:29:52.730 --> 01:29:54.266 look at this, going forward 01:29:54.266 --> 01:29:57.330 there may be some other considerations as well. 01:29:57.330 --> 01:29:59.957 Now we drill down to PG&E 01:30:00.923 --> 01:30:04.470 and in fact at the LIOB meeting, he said 01:30:05.670 --> 01:30:08.350 they were already fully subscribed and it's like 01:30:08.350 --> 01:30:11.910 Whoa, what happened was the shades of what happened 01:30:11.910 --> 01:30:16.910 with the multifamily solar and my way, that's my dog. 01:30:21.860 --> 01:30:24.563 Sorry about that folks, if you're gonna hear that. 01:30:27.760 --> 01:30:28.903 Yes, that's right. 01:30:29.950 --> 01:30:33.500 All those monies were were gobbled up 01:30:33.500 --> 01:30:36.200 because people had, you know it's almost like jeopardy 01:30:38.047 --> 01:30:39.257 who pushes the button first. 01:30:39.257 --> 01:30:42.242 And I said to the PG&E reps that, well, 01:30:42.242 --> 01:30:47.242 if applications are not up to snuff, 01:30:47.880 --> 01:30:50.480 that they need to look at wedding 01:30:50.480 --> 01:30:53.180 the folks in the queue know that there money is freed up. 01:30:53.180 --> 01:30:58.180 Okay, so in terms of the $16 million in PD&E territory am 01:31:01.870 --> 01:31:06.380 and what this means for the folks who are in the queue 01:31:06.380 --> 01:31:10.550 and the notion too that are they unlucky 01:31:10.550 --> 01:31:13.750 because the folks who are processing these 01:31:13.750 --> 01:31:15.867 applications just haven't gotten 01:31:15.867 --> 01:31:16.870 around to their applications. 01:31:16.870 --> 01:31:21.870 Now, the notion of medical rate 01:31:23.840 --> 01:31:28.220 and the low income, I don't know. 01:31:28.220 --> 01:31:30.470 We don't know how many of these applications 01:31:30.470 --> 01:31:33.247 fit in this bin versus that bin. 01:31:33.247 --> 01:31:38.060 And how many dollars are freed 01:31:38.060 --> 01:31:42.523 up depending on, you know, August 17th, is it August 12th? 01:31:44.027 --> 01:31:46.240 Is it five days after this date? 01:31:46.240 --> 01:31:47.073 Isn't the date? 01:31:48.080 --> 01:31:52.589 I think that the visitor, we should do that analysis 01:31:52.589 --> 01:31:56.447 to see if doing a retroactive application 01:31:59.820 --> 01:32:03.850 which I think is a big deal. 01:32:03.850 --> 01:32:06.161 It, when we adopt regulations 01:32:06.161 --> 01:32:11.161 those are pretty sacrosanct and folks are given expectations 01:32:12.146 --> 01:32:15.043 and people haven't spent resources to apply 01:32:15.043 --> 01:32:18.860 and they, and again, how much of an expectation 01:32:18.860 --> 01:32:21.903 and then to have the resemblance of the rug pulled out 01:32:23.704 --> 01:32:28.450 from under them, what is the impact from these monies 01:32:28.450 --> 01:32:31.620 and who else has, is ACU and who gets moved up 01:32:34.666 --> 01:32:38.777 in the tooth to do that kind of regulatory retroactivity. 01:32:40.460 --> 01:32:43.160 There were times that we faced this kind of thing too, 01:32:44.788 --> 01:32:47.873 as mud and we really felt that when you, 01:32:50.040 --> 01:32:53.940 if the promises made promises kept kind of notion 01:32:53.940 --> 01:32:58.580 and to override that we really need to know 01:32:58.580 --> 01:32:59.413 what we're doing. 01:32:59.413 --> 01:33:02.340 So I'm just respectfully asking 01:33:02.340 --> 01:33:05.300 and supporting our Commissioner Mandel to request 01:33:05.300 --> 01:33:10.300 that we hold this for one meeting to have some 01:33:10.707 --> 01:33:15.500 of these questions answered before taking a vote, thank you. 01:33:20.330 --> 01:33:22.870 Thank you, Commissioner Shiroma. 01:33:22.870 --> 01:33:26.703 There are any other comments or thoughts on item five? 01:33:28.570 --> 01:33:33.570 Okay, so do we have a motion to... 01:33:34.610 --> 01:33:38.860 Well, did you want to weigh in 01:33:38.860 --> 01:33:41.010 I'd be interested in hearing your thoughts. 01:33:42.640 --> 01:33:45.330 I share some of the concerns 01:33:45.330 --> 01:33:49.750 of my fellow Commissioners I'm particularly alarmed 01:33:49.750 --> 01:33:53.408 and I wanna thank Commissioner Guzman Aceves staff, 01:33:53.408 --> 01:33:56.299 or doing an and yes you said anecdotal, 01:33:56.299 --> 01:33:59.250 but if you looked at that I was, 01:33:59.250 --> 01:34:02.905 those are shocking revelations 01:34:02.905 --> 01:34:06.787 and I hope we can do a little bit deeper dive on that, 01:34:06.787 --> 01:34:10.703 but thank you, Martha for going to that extent, 01:34:12.226 --> 01:34:17.226 I do have some concerns about retroactive, just in general 01:34:17.480 --> 01:34:22.450 philosophically about retroactive really changing rules. 01:34:22.450 --> 01:34:27.450 I am very concerned about the equity program 01:34:30.380 --> 01:34:33.340 and it being oversubscribed so quickly 01:34:33.340 --> 01:34:37.080 when this was to be a three year rollout. 01:34:37.080 --> 01:34:39.900 So on balance, I think we have to address it 01:34:39.900 --> 01:34:44.900 and I agree Commissioner Rechtschaffen with your assessment. 01:34:46.120 --> 01:34:50.380 So, but I do feel that we need some more consideration 01:34:50.380 --> 01:34:54.001 on this item, and I think it's worth our while 01:34:54.001 --> 01:34:58.393 and it's worth our time to take some time. 01:35:00.460 --> 01:35:03.560 Well, I'm happy to do that. 01:35:03.560 --> 01:35:05.563 I'm happy to respect the desire 01:35:05.563 --> 01:35:09.650 from Commissioner Randolph to Commissioner Shiroma 01:35:09.650 --> 01:35:10.750 to hold it for a meeting 01:35:10.750 --> 01:35:15.750 and to think about it some more, Commissioner Shiroma, 01:35:16.983 --> 01:35:20.660 I don't know that we can, there are, 01:35:20.660 --> 01:35:23.240 that we'll get any more answers to your question 01:35:23.240 --> 01:35:25.760 about who gets moved up in the queue 01:35:25.760 --> 01:35:29.640 and what happens to the applications. 01:35:29.640 --> 01:35:31.385 I think they're just processed 01:35:31.385 --> 01:35:35.042 in accordance with when they were received. 01:35:35.042 --> 01:35:39.160 Of course, if we move the decision, a couple of weeks out 01:35:39.160 --> 01:35:43.220 me more applications will get confirmed reservations 01:35:43.220 --> 01:35:45.340 or just by the operation of time 01:35:45.340 --> 01:35:48.470 that will mean more people will be able to participate 01:35:48.470 --> 01:35:49.943 under the old rules 01:35:49.943 --> 01:35:53.090 but I don't know that we will be able to get any answers 01:35:53.090 --> 01:35:58.090 to any of the broader questions that you raised. 01:35:59.020 --> 01:36:01.443 And of course, both of you and Commissioner Randolph 01:36:01.443 --> 01:36:04.480 raise more larger concerns 01:36:04.480 --> 01:36:07.341 than just the specific operational details 01:36:07.341 --> 01:36:11.230 but I'm happy to respect the whole. 01:36:11.230 --> 01:36:14.167 So I'm, I support doing that 01:36:14.167 --> 01:36:16.400 and we can take a couple more weeks 01:36:16.400 --> 01:36:18.100 and continue to look at the issue. 01:36:20.450 --> 01:36:22.283 I think that it's advisable. 01:36:24.610 --> 01:36:26.790 Okay. Any other comments? 01:36:26.790 --> 01:36:31.490 Yes. I just wanted to make a final comment that 01:36:31.490 --> 01:36:35.745 I appreciate how challenging this is. 01:36:35.745 --> 01:36:40.511 And I understand that even under the, 01:36:40.511 --> 01:36:44.640 in my mind the best of circumstances, which might be, 01:36:44.640 --> 01:36:49.400 you know some compromise around the August 17th date 01:36:49.400 --> 01:36:52.250 or something like that, I recognize that there's gonna be 01:36:53.340 --> 01:36:56.522 some level of retroactivity in any event, 01:36:56.522 --> 01:37:01.522 but I do kind of share Commissioner Sheroma's 01:37:02.600 --> 01:37:03.800 concerns about that 01:37:03.800 --> 01:37:06.310 and I appreciate you at least giving it 01:37:07.210 --> 01:37:08.500 you know, a little more thought. 01:37:08.500 --> 01:37:10.340 I know you've thought about it really carefully 01:37:10.340 --> 01:37:11.630 but just wanted to have the 01:37:11.630 --> 01:37:13.590 opportunity to share our thoughts 01:37:13.590 --> 01:37:15.730 whichever way you decide to come 01:37:15.730 --> 01:37:18.210 out before you bring the item back. 01:37:18.210 --> 01:37:19.203 So I appreciate it. 01:37:20.090 --> 01:37:22.960 Of course, I do think what President Batjer has said 01:37:22.960 --> 01:37:26.260 is really the hardest nut to crack about this. 01:37:26.260 --> 01:37:31.260 This is supposed to last 2024, and here we are in 2020 01:37:32.117 --> 01:37:35.073 and we're seeing the program, you know 01:37:35.073 --> 01:37:37.986 already a waiting list on PGD and the other utilities 01:37:37.986 --> 01:37:41.117 close to their maximum. 01:37:41.117 --> 01:37:44.700 And we're seeing a lot of interest in other crunches 01:37:44.700 --> 01:37:46.520 in the program as well. 01:37:46.520 --> 01:37:49.590 And we have an item for consideration in a couple 01:37:49.590 --> 01:37:52.700 of weeks to shift some money from the 01:37:52.700 --> 01:37:56.301 general commercial budget to the equity, to accommodate 01:37:56.301 --> 01:37:59.600 a backlog and interest in projects there 01:37:59.600 --> 01:38:04.150 with the focus on wildfire resilience. 01:38:04.150 --> 01:38:06.720 And of course, every year it's gonna be more acute 01:38:06.720 --> 01:38:09.790 given the rolling threat we faced by wildfires. 01:38:09.790 --> 01:38:12.590 We just don't have enough money to deal with the new year. 01:38:12.590 --> 01:38:14.043 That's the bottom line. 01:38:19.410 --> 01:38:22.893 Okay. Any other comments or thoughts on item five? 01:38:28.781 --> 01:38:31.280 I'm echoing Commissioner Randolph. 01:38:31.280 --> 01:38:35.530 I knew there, there are practicalities to consider 01:38:38.290 --> 01:38:40.680 in going forward. 01:38:40.680 --> 01:38:45.680 And I can also see a, especially 01:38:47.670 --> 01:38:52.670 with the August 17th scoping ruling saying in that room 01:38:54.542 --> 01:38:59.470 that a recommendation from staff that's Commission 01:38:59.470 --> 01:39:02.541 I consider applying any new eligibility rules that 01:39:02.541 --> 01:39:07.541 may be adopted to apply to all applications submitted 01:39:09.910 --> 01:39:11.630 after today's date. 01:39:11.630 --> 01:39:14.563 Now that date was August 12th, that was scoping. 01:39:16.363 --> 01:39:17.196 It was issued to all parties 01:39:17.196 --> 01:39:20.502 and unfit service list on August 17th. 01:39:20.502 --> 01:39:25.502 And I can see with that communicate embedded right there 01:39:25.840 --> 01:39:30.840 in that scoping ruling, that could be a heavy consideration 01:39:33.570 --> 01:39:37.810 for a retroactive again considerations. 01:39:37.810 --> 01:39:40.670 So I guess that's my long winded way of saying I do. 01:39:40.670 --> 01:39:43.530 I didn't want to be reasonable going forward on this. 01:39:43.530 --> 01:39:47.800 And I do, I did want to make note of that scoping 01:39:48.767 --> 01:39:49.600 like, thank you. 01:39:51.870 --> 01:39:53.940 Thank you Commissioner Shiroma. 01:39:53.940 --> 01:39:55.503 Any other comments or thoughts? 01:39:57.310 --> 01:39:58.483 Okay, seeing none. 01:40:04.130 --> 01:40:05.390 Yes. This is Hans Simon. 01:40:05.390 --> 01:40:07.163 You need a motion? 01:40:07.163 --> 01:40:10.383 I know. (laughs) 01:40:11.880 --> 01:40:13.520 Do I have an emotion 01:40:13.520 --> 01:40:17.393 or to hold or to do anything with item five? 01:40:18.400 --> 01:40:20.000 I'll make a motion to hold it. 01:40:21.340 --> 01:40:22.693 Okay. Do I have a second? 01:40:24.090 --> 01:40:25.570 I'll seconds the motion. 01:40:25.570 --> 01:40:27.567 Oh okay, it's been moved 01:40:27.567 --> 01:40:31.370 and seconded to hold this item I hold 01:40:31.370 --> 01:40:34.830 until when do you want that to be part of the motion? 01:40:34.830 --> 01:40:37.778 The October 22nd meeting or? 01:40:37.778 --> 01:40:39.096 Yeah. 01:40:39.096 --> 01:40:43.310 Okay, well, hold the motion is to hold item five 01:40:43.310 --> 01:40:47.040 till the October 22nd voting meeting 2020. 01:40:47.040 --> 01:40:50.943 Well, the agenda clerk please call the roll. 01:40:52.616 --> 01:40:54.856 Commissioner Shiroma. 01:40:54.856 --> 01:40:55.970 Aye. 01:40:55.970 --> 01:40:58.148 Commissioner Guzman Aceves. 01:40:58.148 --> 01:40:59.540 Aye. 01:40:59.540 --> 01:41:01.457 Commissioner Randolph? 01:41:01.457 --> 01:41:03.152 Yes. 01:41:03.152 --> 01:41:04.498 Commissioner Rechtschaffen. 01:41:04.498 --> 01:41:05.331 Yes. 01:41:06.373 --> 01:41:07.918 President Batjer. 01:41:07.918 --> 01:41:09.055 Yes. Thank you. 01:41:09.055 --> 01:41:13.894 It's unanimous to hold items five 01:41:13.894 --> 01:41:17.850 until October 22nd voting meeting. 01:41:17.850 --> 01:41:19.040 Thank you all. 01:41:19.040 --> 01:41:22.240 Now, moving on on the regular agenda items, 01:41:22.240 --> 01:41:26.950 our next agenda item is item seven 01:41:26.950 --> 01:41:29.310 and that is also Commissioner Rechtschaffen 01:41:29.310 --> 01:41:33.360 but I believe Cheryl Lee from the energy division 01:41:33.360 --> 01:41:35.053 will be giving a presentation. 01:41:37.110 --> 01:41:38.860 That's correct President Batjer. 01:41:38.860 --> 01:41:40.350 Okay. Thank you. 01:41:40.350 --> 01:41:42.353 Is Cheryl on line? 01:41:43.380 --> 01:41:45.800 Yes, morning President Batjer. 01:41:45.800 --> 01:41:47.210 Hi Cheryl. Good morning. 01:41:47.210 --> 01:41:49.672 Thank you. Go ahead. 01:41:49.672 --> 01:41:51.610 Yes, there's a few slides. 01:41:51.610 --> 01:41:53.360 If those could be pulled up please. 01:41:55.583 --> 01:41:58.610 Thank you. Good morning Commissioners. 01:41:58.610 --> 01:42:01.290 I'm Cheryl Lee, supervisor of energy divisions 01:42:01.290 --> 01:42:04.092 renewable procurement and market development section 01:42:04.092 --> 01:42:06.523 because, go to the next slide please. 01:42:08.700 --> 01:42:11.010 So just start off just wanting to give an overview 01:42:11.010 --> 01:42:13.780 of the decisions, and then I'll get into a few details 01:42:13.780 --> 01:42:17.113 of gene that program, as well as the decision. 01:42:18.350 --> 01:42:20.530 This decision resumed the renewable market 01:42:20.530 --> 01:42:22.000 adjusting tariff program 01:42:23.255 --> 01:42:24.851 as an administratively set 01:42:24.851 --> 01:42:26.270 six price feeding tariff program. 01:42:26.270 --> 01:42:29.463 It has been on dissension since December, 2017. 01:42:29.463 --> 01:42:32.612 And so the decision would be strength program. 01:42:32.612 --> 01:42:35.360 The decision also authorizes pricing 01:42:35.360 --> 01:42:38.830 and process changes to bring REMAT into compliance with 01:42:39.816 --> 01:42:42.411 both the public utilities regulatory policies act 01:42:42.411 --> 01:42:47.411 as well as section 399.20 of the public utilities data. 01:42:50.330 --> 01:42:51.730 Next slide, please. 01:42:56.950 --> 01:42:58.550 So to give some context 01:42:59.561 --> 01:43:01.982 for today's decisions wanted to start 01:43:01.982 --> 01:43:04.110 off with giving some background on the REMAT program. 01:43:04.110 --> 01:43:06.403 The program was originally established in 2006 by AB 1969, 01:43:06.403 --> 01:43:11.233 and has been modified several times since. 01:43:12.920 --> 01:43:15.250 The program requires the large industrial 01:43:15.250 --> 01:43:17.411 and utilities to procure renewable electricity. 01:43:17.411 --> 01:43:21.950 Yes, he didn't terrace as a feeding tariff program. 01:43:21.950 --> 01:43:24.090 It is intended to provide a simple mechanism 01:43:24.090 --> 01:43:26.200 for small renewable generators to 01:43:26.200 --> 01:43:27.895 sell renewable electricity utility 01:43:27.895 --> 01:43:31.560 at predefined terms and conditions without engaging 01:43:31.560 --> 01:43:35.043 in timely and potentially costly contract negotiation. 01:43:36.120 --> 01:43:37.950 REMAT program is a subset 01:43:37.950 --> 01:43:40.543 within the renewables portfolio standard program. 01:43:42.534 --> 01:43:43.367 And as such the procurement 01:43:43.367 --> 01:43:46.359 from the program can count towards the 01:43:46.359 --> 01:43:48.259 industrial utilities RPS requirements. 01:43:49.690 --> 01:43:54.450 Do utilities also the through a specific REMAT terrace 01:43:54.450 --> 01:43:56.750 and we met standard power purchase agreements. 01:43:57.740 --> 01:43:58.740 Through the program, 01:44:00.596 --> 01:44:01.988 the industrial utilities are the pitcher 01:44:01.988 --> 01:44:03.560 approximately 500 megawatts out of the statewide 01:44:03.560 --> 01:44:05.633 target was 750 and Glock. 01:44:07.020 --> 01:44:10.410 Eligibility for the program is restricted to RPS 01:44:10.410 --> 01:44:12.670 eligible facilities that are three megawatts 01:44:14.130 --> 01:44:15.463 or less in size. 01:44:16.394 --> 01:44:17.690 Another feature of the program is 01:44:17.690 --> 01:44:19.670 that it is separated into three different categories 01:44:19.670 --> 01:44:24.670 peaking, non peaking and base-load examples of technologies. 01:44:25.460 --> 01:44:27.853 We're thinking would be solar PD for non peaking 01:44:27.853 --> 01:44:31.880 wind, or small hydro, and for base-load electricity 01:44:31.880 --> 01:44:33.453 from landfill gas facilities. 01:44:36.510 --> 01:44:37.623 Next slide, please. 01:44:41.520 --> 01:44:43.367 So getting into the details of decision 01:44:43.367 --> 01:44:47.380 and what it does, a decision we'll place 01:44:47.380 --> 01:44:50.580 the existing pricing adjustment mechanism of the program 01:44:50.580 --> 01:44:53.080 with an administrative as he determined six price. 01:44:54.050 --> 01:44:57.830 So it specifically establishes a methodology 01:44:57.830 --> 01:45:00.997 for setting the purchase price for each program category 01:45:00.997 --> 01:45:02.933 as IOUs appointed cost. 01:45:04.440 --> 01:45:07.455 Category prices are the same for the three IOUs, 01:45:07.455 --> 01:45:08.930 but payments will be adjusted 01:45:08.930 --> 01:45:12.213 by the individual IOUs time of 12 weeks doctors. 01:45:13.400 --> 01:45:15.780 The prices will be based on a weighted average 01:45:15.780 --> 01:45:19.550 of the three hour use recent longterm Proteus contracts 01:45:19.550 --> 01:45:21.450 with facilities that are 20 megawatts 01:45:21.450 --> 01:45:25.440 or less it's the future energy 01:45:25.440 --> 01:45:27.830 division will adjust the pricing annually 01:45:27.830 --> 01:45:30.410 and potentially also consider pricing 01:45:30.410 --> 01:45:32.490 from both the community choice aggregators 01:45:32.490 --> 01:45:34.390 as well as electric service providers. 01:45:36.150 --> 01:45:38.650 The decision also removes the bimonthly program 01:45:38.650 --> 01:45:40.740 periods and cap. 01:45:40.740 --> 01:45:43.160 And this is because they were related 01:45:43.160 --> 01:45:45.860 to the price adjusted mechanism that is being replaced 01:45:46.917 --> 01:45:47.750 in this position. 01:45:47.750 --> 01:45:50.580 The decision also maintains existing program cues 01:45:50.580 --> 01:45:52.300 and key methodology. 01:45:52.300 --> 01:45:55.453 That is the first come first serve aspect of the program. 01:45:56.530 --> 01:46:01.530 Finally, the decision orders these changes 01:46:02.100 --> 01:46:05.450 to be implemented, that utilities who cheer 01:46:05.450 --> 01:46:08.040 to advice letters to update the tariffs 01:46:09.510 --> 01:46:10.443 and standard contracts. 01:46:11.990 --> 01:46:13.320 That concludes my presentation 01:46:13.320 --> 01:46:16.540 and is happy to answer any questions that you have. 01:46:16.540 --> 01:46:18.897 Thank you Cheryl, are there any questions 01:46:18.897 --> 01:46:22.577 for Cheryl and for Rechtschaffen as well 01:46:22.577 --> 01:46:24.873 on item number seven. 01:46:28.696 --> 01:46:33.040 And I was gonna present that drive a couple of things. 01:46:33.040 --> 01:46:34.330 I have a couple of things to say, 01:46:34.330 --> 01:46:36.370 but I first want to make sure 01:46:36.370 --> 01:46:38.830 that there are no questions for Cheryl. 01:46:38.830 --> 01:46:43.050 Sure. I don't see that anyone's raising their hands. 01:46:43.050 --> 01:46:45.700 So thank you again, Cheryl 01:46:45.700 --> 01:46:47.720 and Commissioner Rechtschaffen. 01:46:48.756 --> 01:46:50.117 Thank you very much 01:46:50.117 --> 01:46:51.460 and thank you, Cheryl. 01:46:51.460 --> 01:46:54.440 Cheryl has done incredible work on this decision 01:46:54.440 --> 01:46:58.550 and in all of our PURPA decisions, 01:46:58.550 --> 01:47:01.950 it's an extremely complex area of law 01:47:01.950 --> 01:47:06.820 with federal court decisions, changing the rules as well 01:47:06.820 --> 01:47:09.840 as constant agitation at first and foreclosure changes. 01:47:09.840 --> 01:47:13.890 So it's very, very helpful to have people 01:47:13.890 --> 01:47:16.575 with Cheryl's expertise, as well as others who work on this. 01:47:16.575 --> 01:47:20.772 This decision opens REMAT after a several year hiatus. 01:47:20.772 --> 01:47:23.356 And I think that's important and helpful. 01:47:23.356 --> 01:47:28.356 We have authority under permit to require utilities 01:47:30.270 --> 01:47:34.410 to purchase electricity from small, renewable generators 01:47:34.410 --> 01:47:36.771 and REMAT that there were avoided costs, 01:47:36.771 --> 01:47:39.200 the costs they would otherwise 01:47:40.570 --> 01:47:42.690 have to pay to buy the electricity elsewhere. 01:47:42.690 --> 01:47:47.516 And we have been involved in litigation 01:47:47.516 --> 01:47:50.350 in which federal courts has made clear 01:47:50.350 --> 01:47:53.960 that we need to modify the REMAT program 01:47:53.960 --> 01:47:56.080 and its pricing mechanism to ensure 01:47:56.080 --> 01:47:57.780 that the contract price is truly 01:47:57.780 --> 01:48:02.710 represent avoided costs parties. 01:48:02.710 --> 01:48:05.192 And Cheryl went through some of the changes we've made. 01:48:05.192 --> 01:48:08.040 We have a number of parties who strongly disagree 01:48:08.040 --> 01:48:10.196 with our interpretation of what the law requires 01:48:10.196 --> 01:48:14.483 but our legal division feels very strongly. 01:48:16.033 --> 01:48:19.259 And I'm convinced that we do need to modify REMAT in this 01:48:19.259 --> 01:48:22.590 way to come forward with a federal court ruling. 01:48:22.590 --> 01:48:26.485 And basically we as the decision we're setting 01:48:26.485 --> 01:48:30.920 wholesale prices for the price of electricity and REMAT, 01:48:30.920 --> 01:48:35.920 we can only do that if we have a compliance program, 01:48:35.940 --> 01:48:38.050 it doesn't mean that REMAT has to comply 01:48:38.050 --> 01:48:39.410 with all aspects of profit 01:48:39.410 --> 01:48:43.473 but we do need to have a corporate compliance program. 01:48:44.789 --> 01:48:46.510 If we could have just simply 01:48:46.510 --> 01:48:51.510 we have shoes that had existing, we would have done that. 01:48:51.610 --> 01:48:52.900 Would've been much easier. 01:48:52.900 --> 01:48:55.280 We just don't think that's legally tenable. 01:48:55.280 --> 01:48:56.450 I just want to note a couple 01:48:56.450 --> 01:49:00.750 of notable revisions to the proposed decision that were made 01:49:00.750 --> 01:49:04.700 in the final version to better reflect the cost 01:49:04.700 --> 01:49:07.633 of procurement from small generators. 01:49:08.740 --> 01:49:11.660 We switched the reference point instead 01:49:11.660 --> 01:49:14.450 of using the weighted average 01:49:14.450 --> 01:49:18.370 of all recent renewable IOU contracts. 01:49:18.370 --> 01:49:20.512 We instead use contracts 01:49:20.512 --> 01:49:21.630 with facilities that are 20 megawatts 01:49:21.630 --> 01:49:24.257 and under this is Cheryl mentioned 01:49:24.257 --> 01:49:27.210 that's a more representative that's number one. 01:49:27.210 --> 01:49:30.438 We said, we're going to use all renewable contracts 01:49:30.438 --> 01:49:34.000 not all sides that only 20 megawatts or less lean 01:49:34.000 --> 01:49:35.950 that as a program for small generation. 01:49:36.850 --> 01:49:39.930 Definitely in comments said seven years 01:49:39.930 --> 01:49:41.334 is too far to go back. 01:49:41.334 --> 01:49:43.353 When renewable contracts 01:49:43.353 --> 01:49:47.575 contract prices, the older prices are outdated. 01:49:47.575 --> 01:49:50.940 Renewable prices have gone down. 01:49:50.940 --> 01:49:53.774 We took a very careful second look at this. 01:49:53.774 --> 01:49:56.763 We are constrained though, 01:49:57.955 --> 01:50:01.277 in our ability to use a shorter time period is just 01:50:02.767 --> 01:50:07.340 haven't been enough new renewable contracts 01:50:07.340 --> 01:50:10.610 extra executed by all you use 01:50:10.610 --> 01:50:15.410 in recent years to have enough of a reference point enough 01:50:15.410 --> 01:50:20.410 of a base lease contracts from IOU to determine an average 01:50:22.602 --> 01:50:25.310 if the contract prices are still confidential 01:50:25.310 --> 01:50:26.930 otherwise we can't comport 01:50:26.930 --> 01:50:30.910 with our confidentiality rules to get that requisite number. 01:50:30.910 --> 01:50:32.858 We had to go back at least six years. 01:50:32.858 --> 01:50:34.960 We did have a sufficient number 01:50:34.960 --> 01:50:39.164 of contracts to able to allow us to make a small change. 01:50:39.164 --> 01:50:42.450 And we established prices using contracts 01:50:42.450 --> 01:50:43.660 in the past six years, 01:50:43.660 --> 01:50:45.460 rather than in the past seven years. 01:50:46.970 --> 01:50:49.030 Finally, at some point we requested 01:50:49.030 --> 01:50:53.720 that we use renewable contracts that the CCA have entered 01:50:53.720 --> 01:50:56.835 into into, into determining REMAT contract prices. 01:50:56.835 --> 01:51:00.143 We don't have a complete set data set. 01:51:03.080 --> 01:51:05.773 Reflecting DCA contract prices mentioned decision allows 01:51:06.640 --> 01:51:10.570 for us, allows for staff to make annual price adjustments. 01:51:10.570 --> 01:51:12.240 And it does allow staff to consider 01:51:12.240 --> 01:51:16.770 these prices when doing so, if we get a complete data set so 01:51:16.770 --> 01:51:20.878 that we can adequately weight the contracts we have. 01:51:20.878 --> 01:51:24.220 So these adjustments would be made by the energy division 01:51:24.220 --> 01:51:27.241 and the draft resolution subject to our approval. 01:51:27.241 --> 01:51:31.460 And if we get the data, it can include the 01:51:31.460 --> 01:51:34.892 CCA contract data other load serving entities. 01:51:34.892 --> 01:51:36.880 We could potentially use less 01:51:36.880 --> 01:51:39.480 than six years of contract prices. 01:51:39.480 --> 01:51:43.843 And ideally if we get that, we could reflect 01:51:43.843 --> 01:51:46.110 whatever price we determined to 01:51:46.110 --> 01:51:48.319 reflect the most recent RPS contracts 01:51:48.319 --> 01:51:52.030 for each of the three categories that Cheryl identified 01:51:53.121 --> 01:51:54.910 the parties raise a bunch 01:51:54.910 --> 01:51:57.000 of other issues that could be relevant 01:51:57.000 --> 01:52:00.730 to considering setting the REMAT price. 01:52:00.730 --> 01:52:03.630 We did not have enough information 01:52:03.630 --> 01:52:08.150 in the record to determine if adjustments based 01:52:08.150 --> 01:52:10.833 on those were warranted or if so, how much. 01:52:12.190 --> 01:52:13.023 And that was unfortunate. 01:52:13.023 --> 01:52:15.130 We may reconsider these issues 01:52:15.130 --> 01:52:18.693 as appropriate in the future, but we could not act on them. 01:52:19.672 --> 01:52:21.672 Now. I want to, again, thank Cheryl Lee. 01:52:22.858 --> 01:52:23.958 Also, Valerie Albright 01:52:26.399 --> 01:52:27.232 Christine Hammond, and Stephanie Hein in the legal division 01:52:30.601 --> 01:52:35.101 know that an incredible job protecting health programs 01:52:37.440 --> 01:52:38.735 and litigating these perfect cases 01:52:38.735 --> 01:52:39.815 and also ALJ lock a hot Paul 01:52:39.815 --> 01:52:41.777 and also my advisor, Sandy Goldberg. 01:52:41.777 --> 01:52:44.030 And with that, I asked for your support in this item. 01:52:44.030 --> 01:52:45.730 Okay. Thank you again. 01:52:45.730 --> 01:52:47.477 Thank you Cheryl. 01:52:47.477 --> 01:52:49.397 And thank you, Commissioner Rechtschaffen. 01:52:49.397 --> 01:52:53.073 for the fuller explanation on, on this very difficult 01:52:53.073 --> 01:52:57.028 very difficult item. 01:52:57.028 --> 01:53:00.420 Are there any comments, questions? 01:53:00.420 --> 01:53:02.723 Yes. Commissioner Guzman Aceves. 01:53:03.930 --> 01:53:05.588 Thank you. 01:53:05.588 --> 01:53:09.320 I just want to recognize the high staff time 01:53:09.320 --> 01:53:12.503 per megawatt ratio on this issue. 01:53:13.900 --> 01:53:17.651 And certainly the amount of amazing amount 01:53:17.651 --> 01:53:21.657 of staff work on finding, I think a great balance. 01:53:21.657 --> 01:53:25.069 I think you were generous, but not overly generous 01:53:25.069 --> 01:53:30.069 and the adaptability that you've put forward here is 01:53:30.260 --> 01:53:34.030 is really smart and something that we don't not to do 01:53:34.030 --> 01:53:38.280 in our decisions to allow us to maintain a pace 01:53:38.280 --> 01:53:40.360 on our regulations. 01:53:40.360 --> 01:53:41.852 So we don't get behind 01:53:41.852 --> 01:53:46.010 we don't anticipate things as in our last conversation. 01:53:46.010 --> 01:53:50.100 So anyway, I think this is good to get us back 01:53:50.100 --> 01:53:53.210 on track to getting these much needed generation 01:53:53.210 --> 01:53:55.330 even though they're small chunks. 01:53:55.330 --> 01:53:58.448 And I know they're very important to communities 01:53:58.448 --> 01:54:02.640 and I think it's a really great decision. 01:54:02.640 --> 01:54:06.083 So thank you very much for everybody's hard work on this. 01:54:08.800 --> 01:54:09.633 Thank you. 01:54:09.633 --> 01:54:11.460 Any other comments? 01:54:11.460 --> 01:54:12.763 Yes. Commissioner Sharona. 01:54:14.060 --> 01:54:14.893 Thank you. 01:54:14.893 --> 01:54:18.106 I wanted to add my thanks Commissioner Aceves. 01:54:18.106 --> 01:54:21.210 Erekson often to you and judge I'll walk and Paul and Cheryl 01:54:23.032 --> 01:54:25.732 and the team in legal and energy division, the journey 01:54:27.750 --> 01:54:32.730 through the courts and the federal 01:54:32.730 --> 01:54:35.740 requirements has been quite torturous. 01:54:35.740 --> 01:54:40.403 And, but here we are ready to relaunch a jumpstart. 01:54:43.890 --> 01:54:46.145 What have you reopened this program? 01:54:46.145 --> 01:54:49.989 It's an important and meaningful milestone. 01:54:49.989 --> 01:54:54.989 Yes, complicated many rules, many legal ramifications 01:54:57.960 --> 01:54:59.395 and it had to be navigated. 01:54:59.395 --> 01:55:04.395 And I think that the proposed musician has navigated all 01:55:04.820 --> 01:55:09.820 of that to a very viable set of criteria and the way 01:55:10.653 --> 01:55:15.653 for developers and parties to partake of the program. 01:55:19.060 --> 01:55:23.021 So I'm excited to the prospect of other reopening of this 01:55:23.021 --> 01:55:27.673 as Commissioner, because this is important 01:55:27.673 --> 01:55:32.673 for any small chunks to be viable and to move forward. 01:55:33.380 --> 01:55:36.834 And as we heard from Pete sound scholars or reports 01:55:36.834 --> 01:55:41.730 or it's all essential, small or large 01:55:41.730 --> 01:55:44.330 in terms of these renewable projects 01:55:44.330 --> 01:55:49.094 that are going to get us towards those state clinicals 01:55:49.094 --> 01:55:53.043 and also provide for the reliability that we need. 01:55:53.043 --> 01:55:57.700 So I look forward to voting aye, on this PD. 01:55:57.700 --> 01:55:58.533 Thank you. 01:56:00.110 --> 01:56:01.810 Thank you, Commissioner Shiroma. 01:56:02.840 --> 01:56:05.978 I just add my words to have, thanks to this is a very 01:56:05.978 --> 01:56:10.978 the PD represents, I think, a very difficult compromise 01:56:12.211 --> 01:56:15.190 or difficult to reach compromise. 01:56:15.190 --> 01:56:18.119 And as Commissioner Sherma just said 01:56:18.119 --> 01:56:23.010 I learned in real time in August 01:56:23.010 --> 01:56:28.010 and September that every little chunk helps tremendously. 01:56:28.220 --> 01:56:32.277 So even though these are small, we're all quoting Martha 01:56:32.277 --> 01:56:34.723 on this small chunks, they're really important. 01:56:35.620 --> 01:56:38.980 So this is a long and winding road. 01:56:38.980 --> 01:56:43.300 Nope, no unintended to the winding Creek decision. 01:56:43.300 --> 01:56:46.780 But so I thank you very much. 01:56:46.780 --> 01:56:50.720 Commissioner Rick Shovin and Cheryl and team. 01:56:50.720 --> 01:56:53.477 So I don't have any further comments. 01:56:53.477 --> 01:56:57.035 Other than the understanding how difficult this was. 01:56:57.035 --> 01:57:00.570 Any other comments or thoughts? 01:57:00.570 --> 01:57:01.403 I'm seven. 01:57:02.940 --> 01:57:04.410 I'll just echo everything. 01:57:04.410 --> 01:57:08.370 Everybody said, including the, the point about a lot 01:57:08.370 --> 01:57:12.270 of staff time per megawatt, challenging issue. 01:57:12.270 --> 01:57:14.170 It's a ton of work. 01:57:14.170 --> 01:57:17.603 So thank you everyone for, the heavy lift. 01:57:18.955 --> 01:57:20.430 And that was a very clever comment. 01:57:20.430 --> 01:57:21.480 I'm going to remember that. 01:57:21.480 --> 01:57:23.240 Well Martha, I think that we can apply 01:57:23.240 --> 01:57:25.350 it in other areas as well. 01:57:25.350 --> 01:57:30.350 Well said, well said, okay, we'll see. 01:57:30.910 --> 01:57:33.606 No other comments or discussion. 01:57:33.606 --> 01:57:36.370 Will the gender clerk please call 01:57:37.241 --> 01:57:39.180 the roll on item number seven. 01:57:39.180 --> 01:57:40.330 Commissioner Shiroma. 01:57:41.220 --> 01:57:42.570 Aye. 01:57:42.570 --> 01:57:44.486 Commissioner Guzman Aceves. 01:57:44.486 --> 01:57:45.847 Aye. 01:57:45.847 --> 01:57:47.073 Commissioner Randolph. 01:57:47.073 --> 01:57:48.930 Yes. 01:57:48.930 --> 01:57:50.560 Commissioner Rechtschaffen. 01:57:51.500 --> 01:57:52.333 Yes. 01:57:52.333 --> 01:57:53.400 President Batjer. 01:57:53.400 --> 01:57:54.810 Yes. Thank you. 01:57:54.810 --> 01:57:56.760 Item seven is passed unanimously 01:57:56.760 --> 01:57:59.590 moving on now to item number eight. 01:57:59.590 --> 01:58:01.580 And this is an item 01:58:01.580 --> 01:58:04.840 from the energy division director Randolph 01:58:04.840 --> 01:58:06.986 but today it will be presented 01:58:06.986 --> 01:58:10.420 by Dorothy Duda from the energy division. 01:58:10.420 --> 01:58:11.783 Dorothy, are you online? 01:58:13.770 --> 01:58:14.740 Yes, I am. 01:58:14.740 --> 01:58:16.042 Can you hear me? 01:58:16.042 --> 01:58:17.753 We can hear you. 01:58:19.080 --> 01:58:22.879 Okay. I have some slides on this that they can be brought up 01:58:22.879 --> 01:58:27.879 right, I am presenting to you resolution E5059 01:58:34.223 --> 01:58:35.242 which is implementation of reentry fees 01:58:35.242 --> 01:58:36.075 and financial security requirements 01:58:36.075 --> 01:58:38.826 for our community choice aggregators in California. 01:58:38.826 --> 01:58:42.240 And again Dorothy due to manager of the market 01:58:42.240 --> 01:58:45.049 structure costs and natural gas branch. 01:58:45.049 --> 01:58:48.043 I think we can move to the next slide. 01:58:51.625 --> 01:58:55.740 Okay. By way of a little background, two years ago 01:58:55.740 --> 01:59:00.450 decision 1805022 establish the requirements 01:59:00.450 --> 01:59:04.070 for these re-entry fees and financial security requirements 01:59:04.070 --> 01:59:06.600 that CCA will need to pay 01:59:06.600 --> 01:59:09.820 in the event of an involuntary return 01:59:09.820 --> 01:59:12.560 of CCA customers to utility service. 01:59:12.560 --> 01:59:14.210 We haven't seen this yet 01:59:14.210 --> 01:59:17.361 but they just didn't decision established 01:59:17.361 --> 01:59:21.450 the fee structure and the requirements 01:59:21.450 --> 01:59:26.220 for PCA's to post financial security requirements 01:59:26.220 --> 01:59:29.620 which include letters of credit, 01:59:29.620 --> 01:59:34.136 surety bonds, or cash in escrow accounts. 01:59:34.136 --> 01:59:39.136 Now this resolution addresses the utilities advice 01:59:39.350 --> 01:59:41.500 letters that were filed to implement 01:59:41.500 --> 01:59:43.920 the decision of the decision. 01:59:43.920 --> 01:59:47.320 And it was a very long road 01:59:47.320 --> 01:59:49.746 of, there were many disputed issues 01:59:49.746 --> 01:59:53.470 and staff took a long time to thoroughly review 01:59:53.470 --> 01:59:56.060 and dispose of all of these disputes. 01:59:56.060 --> 01:59:59.306 As you can see, it's a fairly long resolution. 01:59:59.306 --> 02:00:03.060 We have had interim financial security requirements 02:00:03.060 --> 02:00:06.283 and bond in place in the meantime. 02:00:08.470 --> 02:00:10.743 Let me move to the next slide please. 02:00:14.270 --> 02:00:17.960 All right, the significant contested issues 02:00:17.960 --> 02:00:20.791 as I mentioned that staff had to grapple with, 02:00:20.791 --> 02:00:23.770 were mainly in two categories. 02:00:23.770 --> 02:00:28.560 The first was the DCA customer costs responsibility 02:00:28.560 --> 02:00:33.560 in the event of an involuntary return, there was no dispute 02:00:34.350 --> 02:00:37.648 that the CCA itself must pay reentry fees 02:00:37.648 --> 02:00:42.648 but what is the CCA wasn't able to pay them? 02:00:43.160 --> 02:00:48.110 The resolution States that DCA customers bear costs 02:00:48.110 --> 02:00:51.960 for any fees, the PUC deemed necessary in the event 02:00:51.960 --> 02:00:53.970 of an involuntary return. 02:00:53.970 --> 02:00:57.820 And this is the same as the approach adopted 02:00:57.820 --> 02:01:00.980 for direct access customers, which complies 02:01:00.980 --> 02:01:05.980 with the guidance that the decision 1805022 02:01:06.366 --> 02:01:09.020 stated about how to handle this involuntary return 02:01:09.020 --> 02:01:09.853 and these fees. 02:01:10.822 --> 02:01:13.180 So that's the first issue. 02:01:13.180 --> 02:01:15.840 The first bullet there and the bullet, 02:01:15.840 --> 02:01:20.440 the second significant issue was disputes 02:01:20.440 --> 02:01:23.350 over when the financial security instrument could 02:01:23.350 --> 02:01:26.810 be activated or drawn upon by the utility 02:01:26.810 --> 02:01:30.927 and the utilities and the CPAs disagreed 02:01:30.927 --> 02:01:33.430 on the tariff language here 02:01:33.430 --> 02:01:36.480 on the conditions that would allow the utility 02:01:36.480 --> 02:01:38.133 to draw on the instrument. 02:01:39.840 --> 02:01:43.530 The resolution states that the financial security 02:01:43.530 --> 02:01:48.530 instrument will be activated only for an involuntary return 02:01:48.640 --> 02:01:51.590 or as specified in the instrument itself 02:01:51.590 --> 02:01:54.553 which is mutually agreed upon by the parties. 02:01:57.960 --> 02:02:00.880 Let's move to the last two slides 02:02:00.880 --> 02:02:02.393 or the next slide, slide four. 02:02:04.960 --> 02:02:09.120 Okay, my last two slides, I will not read in detail 02:02:09.120 --> 02:02:12.160 but I just want to point out that these slides lay 02:02:12.160 --> 02:02:15.340 out the involuntary return process 02:02:15.340 --> 02:02:19.890 that is specified in the resolution. 02:02:19.890 --> 02:02:22.823 When the, when it involuntary return 02:02:22.823 --> 02:02:27.823 it can occur the advice letter filing 02:02:28.250 --> 02:02:29.850 that the utility should make 02:02:29.850 --> 02:02:34.350 with the calculation of the fees we, 02:02:34.350 --> 02:02:37.806 I described here, how the advisor can be protested 02:02:37.806 --> 02:02:42.360 but the utility can still draw upon the financial 02:02:42.360 --> 02:02:45.813 security instrument even in the event of a protest. 02:02:47.060 --> 02:02:49.490 And then next slide please. Thank you. 02:02:53.655 --> 02:02:57.247 Here I just provide some further clarification 02:02:57.247 --> 02:03:01.010 on the process and what happens if there are disputes 02:03:01.010 --> 02:03:05.090 about the reentry fees, we allow a memo account 02:03:05.090 --> 02:03:08.027 for the utility to track disputed costs. 02:03:08.027 --> 02:03:12.210 And we lay out that a future provider 02:03:12.210 --> 02:03:17.210 of last resort proceeding is being drafted at this moment. 02:03:18.050 --> 02:03:21.390 And so we envision any dispute can be handled 02:03:21.390 --> 02:03:24.813 in that proceeding or a successor proceeding as necessary. 02:03:26.630 --> 02:03:30.550 I just want to thank Dina Makin and Travis Blackout 02:03:30.550 --> 02:03:34.273 from my staff for the adulterant work on this resolution. 02:03:36.440 --> 02:03:39.223 And I'll pause there for questions. 02:03:39.223 --> 02:03:44.223 Okay Darcy. Thank you very much, questions Commissioners. 02:03:47.500 --> 02:03:51.016 I don't see any questions so well done Dorothy. 02:03:51.016 --> 02:03:51.849 Great. 02:03:53.567 --> 02:03:58.567 Are there any questions of, well, 02:03:59.267 --> 02:04:03.543 it's not a resolution sorry, anyway, any other comments 02:04:03.543 --> 02:04:05.623 as opposed to questions? 02:04:06.465 --> 02:04:07.833 Yeah, let's make a brief. 02:04:08.747 --> 02:04:10.343 (indistinct) 02:04:10.343 --> 02:04:11.347 Yes. Thank you, president Betcha. 02:04:11.347 --> 02:04:14.135 I just in recognition of all the elements 02:04:14.135 --> 02:04:16.422 of conversation and compromise 02:04:16.422 --> 02:04:21.422 and finding middle ground as we continue to have a growth 02:04:22.396 --> 02:04:26.388 in load serving entities, particularly the CCAs 02:04:26.388 --> 02:04:30.300 and their tremendous role in our future and the importance 02:04:30.300 --> 02:04:32.547 of all these little details, getting figured out 02:04:32.547 --> 02:04:35.730 we focus a lot on the discussions 02:04:35.730 --> 02:04:39.110 that will most be having on PCIA. 02:04:39.110 --> 02:04:42.207 And we heard this morning a little bit of that also, 02:04:42.207 --> 02:04:45.470 and just the amount of collaboration 02:04:45.470 --> 02:04:48.590 and constant dialogue that is needed 02:04:48.590 --> 02:04:50.820 and will continue to be needed. 02:04:50.820 --> 02:04:53.640 And so just thank Dorothy and her team 02:04:53.640 --> 02:04:57.240 for that, and for kind of the new reality of 02:04:57.240 --> 02:04:59.270 how we're doing procurement 02:04:59.270 --> 02:05:02.566 and doing our relationship with all of our customers. 02:05:02.566 --> 02:05:03.733 Thank you. 02:05:04.830 --> 02:05:06.048 Thank you Commissioner. 02:05:06.048 --> 02:05:07.703 Any other comments or thoughts? 02:05:09.900 --> 02:05:10.850 Yes Commissioner. 02:05:11.860 --> 02:05:12.693 Yeah. 02:05:14.090 --> 02:05:15.545 Okay. Thank you. 02:05:15.545 --> 02:05:20.545 Just a once again thank you for the various little work 02:05:20.720 --> 02:05:24.450 and in a case to be interviewed division 02:05:24.450 --> 02:05:26.648 through this resolution. 02:05:26.648 --> 02:05:31.648 I appreciate that it works to clarify, amplify 02:05:32.880 --> 02:05:36.344 and carry forward a state law that does require 02:05:36.344 --> 02:05:41.200 like TCAs and our customers cover the cost associated 02:05:41.200 --> 02:05:44.417 with reentering on the service. 02:05:44.417 --> 02:05:49.405 And this is all geared towards the trend towards equity 02:05:49.405 --> 02:05:54.405 and I support, you know staunchly a community's right to 02:05:54.630 --> 02:05:57.845 choose it's its energy procure. 02:05:57.845 --> 02:06:01.760 And in doing that to prevent that cross subsidization 02:06:04.525 --> 02:06:08.608 between bundled and unbundled customers is important 02:06:08.608 --> 02:06:12.470 within that legal and regulatory framework 02:06:12.470 --> 02:06:17.470 for successful utilities and successful PCA's. 02:06:17.600 --> 02:06:19.857 So I support the resolution. Thank you. 02:06:21.691 --> 02:06:24.893 Thank you Commissioner Shiroma, any other comments? 02:06:25.980 --> 02:06:27.970 Okay. Seeing none, I will, 02:06:27.970 --> 02:06:31.323 the agenda clerk, please call the roll on item eight. 02:06:32.944 --> 02:06:35.030 Commisioner Shiroma. 02:06:35.030 --> 02:06:36.390 Aye. 02:06:36.390 --> 02:06:38.248 Commissioner Guzman Aceves. 02:06:38.248 --> 02:06:39.462 Aye. 02:06:39.462 --> 02:06:41.644 Commissioner Randolph. 02:06:41.644 --> 02:06:42.477 Yes. 02:06:43.908 --> 02:06:45.807 Commissioner Rechtschaffen. 02:06:45.807 --> 02:06:47.246 Yes. 02:06:47.246 --> 02:06:48.650 Batjer. 02:06:48.650 --> 02:06:49.900 Yes. Thank you. 02:06:49.900 --> 02:06:52.430 Item eight is passed unanimously again. 02:06:52.430 --> 02:06:56.110 Dorothy, my thanks to you and the hardworking staff. 02:06:56.110 --> 02:06:57.233 Appreciate it greatly. 02:06:59.470 --> 02:07:03.250 Moving Now on to item number nine, 02:07:03.250 --> 02:07:05.350 which is Commissioner Sharoma. 02:07:10.950 --> 02:07:12.073 I think you're muted. 02:07:14.025 --> 02:07:14.925 Okay. Thank you. 02:07:15.905 --> 02:07:16.738 I think I unmuted. 02:07:16.738 --> 02:07:18.007 Okay. 02:07:18.007 --> 02:07:18.900 Here we go. Thank you to all. 02:07:18.900 --> 02:07:21.322 Thank you, President Batjer. 02:07:21.322 --> 02:07:26.322 This is proposal to approve the proposed decision 02:07:27.810 --> 02:07:32.410 on the R 20-2S08 to support the amount 02:07:34.310 --> 02:07:37.564 minimum service standard for the California lifeline 02:07:37.564 --> 02:07:39.610 and replacement of federal support for 02:07:39.610 --> 02:07:41.880 wildlife participants program. 02:07:41.880 --> 02:07:44.520 Okay, so this program, 02:07:44.520 --> 02:07:46.970 once I'm programming has been in place since 1983 02:07:47.990 --> 02:07:52.990 and the federal lifeline program was enact 02:07:53.907 --> 02:07:57.350 a year later implemented it in 1985. 02:07:57.350 --> 02:08:01.340 So I like to think that the federal program was inspired 02:08:01.340 --> 02:08:03.466 by what was going on in California. 02:08:03.466 --> 02:08:06.480 And the federal program does provide subsidies 02:08:06.480 --> 02:08:09.320 for wireless and wireline. 02:08:09.320 --> 02:08:13.990 And again, we have audible Gwen Moore to thank 02:08:13.990 --> 02:08:17.746 for this landmark act in California. 02:08:17.746 --> 02:08:20.567 We unfortunate watch her this year. 02:08:20.567 --> 02:08:25.567 She provided the foundation for the quality of service 02:08:25.908 --> 02:08:27.850 for the lifeline program 02:08:27.850 --> 02:08:30.520 and the proposals that are outlined 02:08:30.520 --> 02:08:32.540 in this proposed decision you know, 02:08:32.540 --> 02:08:36.490 hopes to do justice by her vision. 02:08:36.490 --> 02:08:39.370 The highlight I'd like to make 02:08:39.370 --> 02:08:40.670 about the proposed decision is 02:08:40.670 --> 02:08:43.271 that for the first time it brings broadband service 02:08:43.271 --> 02:08:47.280 into the program especially important 02:08:47.280 --> 02:08:49.820 during this COVID-19 pandemic 02:08:49.820 --> 02:08:54.820 which has emphasized the importance of broadband access 02:08:54.900 --> 02:08:59.480 for all as California's need to have support 02:08:59.480 --> 02:09:03.090 for distance learning for tele-health 02:09:03.090 --> 02:09:04.323 and working from home. 02:09:05.347 --> 02:09:10.347 And I think the PD accomplishes this objective 02:09:10.368 --> 02:09:13.320 by adjusting our lifelines program 02:09:13.320 --> 02:09:17.030 for the specific supportive mounts. 02:09:17.030 --> 02:09:18.710 The minimum service standards 02:09:18.710 --> 02:09:21.647 these amounts of standards were arrived 02:09:21.647 --> 02:09:25.130 after a robust analysis was performed 02:09:25.130 --> 02:09:27.884 by our communications division staff 02:09:27.884 --> 02:09:30.753 and our assigned Administrative Law Judge, 02:09:31.801 --> 02:09:35.300 judge Wong, who really put through all of the data, 02:09:35.300 --> 02:09:37.849 all of the information, all of the comments 02:09:37.849 --> 02:09:41.529 and all of this in concert with our budget limitations 02:09:41.529 --> 02:09:45.350 and all without proposing an increase 02:09:45.350 --> 02:09:47.640 in the current surcharge. 02:09:47.640 --> 02:09:49.810 So first for the wireless service 02:09:49.810 --> 02:09:53.360 with blog ban in the community conditions 02:09:53.360 --> 02:09:56.370 affordability of utility service decisions 02:09:56.370 --> 02:09:59.890 that we voted out in July, we adopted 02:09:59.890 --> 02:10:01.920 in a central level of broadband service 02:10:01.920 --> 02:10:05.930 and concluded that the more act among other stand sheets 02:10:05.930 --> 02:10:09.460 demonstrates that the condition has a role in closing 02:10:09.460 --> 02:10:12.380 the digital divide in California 02:10:12.380 --> 02:10:15.210 and bringing advanced communication services 02:10:15.210 --> 02:10:19.045 including broadband internet services to all California. 02:10:19.045 --> 02:10:22.750 This program must support affordable choices 02:10:22.750 --> 02:10:24.730 where California is across the state 02:10:24.730 --> 02:10:28.060 including rural and urban California households 02:10:28.060 --> 02:10:31.928 and individuals who need no cost wireless services. 02:10:31.928 --> 02:10:34.240 And of course for the struggling families 02:10:34.240 --> 02:10:36.830 who need mobile family plans 02:10:36.830 --> 02:10:40.690 or fixed voice or broadband services, Governor news 02:10:40.690 --> 02:10:43.640 I'm also highlighted this need for broader and services 02:10:43.640 --> 02:10:47.560 with executive order, somebody 320 on broadband 02:10:47.560 --> 02:10:50.487 for all to bridge the digital divide in our state. 02:10:50.487 --> 02:10:51.820 And the Commission followed 02:10:51.820 --> 02:10:54.185 up on these efforts recently when we opened 02:10:54.185 --> 02:10:58.530 like everyone making 2009 001 02:10:58.530 --> 02:11:02.120 to excellent celebrate the deployment of an access 02:11:02.120 --> 02:11:04.827 to quality affordable internet for all California. 02:11:04.827 --> 02:11:06.390 And that effort is being led 02:11:06.390 --> 02:11:08.980 by Commissioner Rechtschaffen. 02:11:08.980 --> 02:11:11.964 Now to address this need within our lifeline program, 02:11:11.964 --> 02:11:15.340 our Commission staff issued data requests 02:11:15.340 --> 02:11:18.760 to industry service providers to obtain information 02:11:18.760 --> 02:11:22.454 on the wireless service is provided on a nationwide basis 02:11:22.454 --> 02:11:27.454 in order to estimate participants wireless data needs. 02:11:27.460 --> 02:11:28.970 And based on the data received 02:11:28.970 --> 02:11:32.320 our staff generated a strong proposal that relied 02:11:32.320 --> 02:11:34.129 on a general market offerings 02:11:34.129 --> 02:11:37.670 that while addressing consumer needs. 02:11:37.670 --> 02:11:39.800 So we really approached this effort 02:11:39.800 --> 02:11:44.617 that there be a equivalency 02:11:46.370 --> 02:11:49.140 in the kinds of art options for the low income customers 02:11:49.140 --> 02:11:54.140 because after all in energy, everyone gets the same energy. 02:11:55.220 --> 02:11:57.830 There is a discount for that energy, 02:11:57.830 --> 02:12:00.803 but it is the same quality of energy. 02:12:00.803 --> 02:12:05.803 So the comments on the short proposal then provided it does 02:12:06.470 --> 02:12:08.790 with input on data needs by participants 02:12:08.790 --> 02:12:11.400 and allowed us to put together a 02:12:11.400 --> 02:12:14.530 voluntary broadband option that our service providers 02:12:14.530 --> 02:12:16.540 that new things can meet. 02:12:16.540 --> 02:12:19.720 We also put together a completely free option 02:12:19.720 --> 02:12:22.800 for consumers with modest data cap 02:12:22.800 --> 02:12:26.050 and a subsidized plans that match 02:12:26.050 --> 02:12:29.143 current customer data usage, 02:12:29.143 --> 02:12:32.220 more specifically great this proposed decisions 02:12:32.220 --> 02:12:35.348 that supports the wireless lifeline tears 02:12:35.348 --> 02:12:37.600 by specifying a basic 02:12:37.600 --> 02:12:41.211 and standard plan available to participants at no cost 02:12:41.211 --> 02:12:44.440 while offering a mobile broadband allowance 02:12:44.440 --> 02:12:47.640 of four games in six gigs respectively, 02:12:47.640 --> 02:12:51.380 the PD also proposes a flexible upgrade plan 02:12:51.380 --> 02:12:55.660 or family plan that includes at least 12 gigabytes 02:12:55.660 --> 02:12:57.560 of mobile data that incorporates 02:12:57.560 --> 02:13:00.380 the Commissioner review process for affordability. 02:13:00.380 --> 02:13:03.140 If some of this proposed decision provides it 02:13:03.140 --> 02:13:05.668 for these voluntary service options 02:13:05.668 --> 02:13:08.146 for wireless participanst after an methodical 02:13:08.146 --> 02:13:13.146 and thorough analysis of the data need to call consumers. 02:13:13.185 --> 02:13:15.623 Now for the wireline service. 02:13:15.623 --> 02:13:20.623 In addition to addressing wireless with this proposal 02:13:20.766 --> 02:13:23.920 that's lifeline service and subsidy levels 02:13:23.920 --> 02:13:27.090 for the wireline service for bundled service plans. 02:13:27.090 --> 02:13:28.110 That includes voice 02:13:29.369 --> 02:13:32.551 and broadband service as the FCC to reduce subsidies 02:13:32.551 --> 02:13:36.220 for voice only plans on an annual basis. 02:13:36.220 --> 02:13:39.321 So that's our proposal sets a California subsidy level 02:13:39.321 --> 02:13:41.630 for voice over internet protocol 02:13:41.630 --> 02:13:46.630 or VoIP services bundled with fixed plug in services. 02:13:46.770 --> 02:13:49.280 As long as it's a VoIP service connects 02:13:49.280 --> 02:13:51.610 to the public switch telephone network 02:13:51.610 --> 02:13:54.203 and meet emergency 911 obligation 02:13:54.203 --> 02:13:56.171 to address safety concerns. 02:13:56.171 --> 02:13:58.220 This proposal also comes 02:13:58.220 --> 02:14:01.490 after a review of service provider data 02:14:01.490 --> 02:14:05.227 and party comments to our staff through a proposal. 02:14:05.227 --> 02:14:10.227 Now to the wireline measuring VoIP service. 02:14:10.290 --> 02:14:13.250 In addition to the site just described the wireless 02:14:13.250 --> 02:14:16.113 and wireline service proposal. 02:14:17.050 --> 02:14:18.880 We also focus on changes 02:14:18.880 --> 02:14:23.523 to an outdated element of the lifeline program known 02:14:23.523 --> 02:14:26.750 as wireline measured a great service. 02:14:26.750 --> 02:14:29.760 It dates back to 1980s when terrorists 02:14:29.760 --> 02:14:34.300 for local long distance international calls varied 02:14:34.300 --> 02:14:37.050 and flat rate service was less common. 02:14:37.050 --> 02:14:40.330 Today is flat rate service is standard. 02:14:40.330 --> 02:14:42.447 However, approximately 13% 02:14:42.447 --> 02:14:44.770 of the California lifeline wireline 02:14:44.770 --> 02:14:49.070 participants continue to receive measured rate service 02:14:49.070 --> 02:14:52.040 in 2019 by their providers. 02:14:52.040 --> 02:14:55.864 Most program providers only offer measured rates service 02:14:55.864 --> 02:14:59.110 for legacy participants. 02:14:59.110 --> 02:15:02.490 So our Commission staff raises issue in the shot proposal 02:15:02.490 --> 02:15:05.680 by presenting the opportunity to save the program 02:15:05.680 --> 02:15:09.060 and estimated $9.2 million per year. 02:15:09.060 --> 02:15:12.030 I no longer offering the higher subsidue 02:15:12.030 --> 02:15:14.010 for measured rate service. 02:15:14.010 --> 02:15:18.563 In 2019 lifeline program provided an average of $36.65 02:15:20.367 --> 02:15:23.790 in subsidies rate customer compared 02:15:23.790 --> 02:15:28.790 with the $14 and 95, a dumpy for flat rate customers. 02:15:28.800 --> 02:15:33.090 And again, it was measured rate programs 02:15:33.090 --> 02:15:38.090 our legacy programs that are out of date 02:15:38.550 --> 02:15:43.550 and one provider in fact was being given $114 per customer. 02:15:45.827 --> 02:15:46.943 The more act requires 02:15:46.943 --> 02:15:48.580 that the Commission implement the program 02:15:48.580 --> 02:15:52.027 in a way that is equitable non-discriminatory 02:15:52.027 --> 02:15:54.080 and without competitive consequences 02:15:54.080 --> 02:15:57.106 for the telecommunications industry in California 02:15:57.106 --> 02:16:01.269 the straw proposal found that the currents on levels 02:16:01.269 --> 02:16:06.267 for those legacy measured rates violate this requirement 02:16:06.267 --> 02:16:09.889 and provide a competitive advantage 02:16:09.889 --> 02:16:14.840 that is not allowed by this program. 02:16:14.840 --> 02:16:19.080 Accordingly, we propose that the program should eliminate 02:16:19.080 --> 02:16:21.900 subsidies for those measures of AIDS. 02:16:21.900 --> 02:16:25.980 However, we do recognize that it may not be feasible 02:16:25.980 --> 02:16:30.210 to, for all of the wireline providers too. 02:16:30.210 --> 02:16:33.945 I got noticed and transition on day one. 02:16:33.945 --> 02:16:38.420 So we are proposing December 1st, 2020 02:16:39.431 --> 02:16:41.390 and you do need to protect participants 02:16:41.390 --> 02:16:44.120 during this proposed transition. 02:16:44.120 --> 02:16:46.270 So in light of that is proposed 02:16:46.270 --> 02:16:49.750 in the PV setting up a transition period 02:16:49.750 --> 02:16:52.260 with advanced notice for all customers 02:16:52.260 --> 02:16:56.117 and a bill credit for conversion from the measured rate 02:16:56.117 --> 02:16:59.080 two to flat rate, to minimize disruptions 02:17:00.044 --> 02:17:02.570 in service or convert a conversion piece 02:17:02.570 --> 02:17:04.880 and also to protect the customers. 02:17:04.880 --> 02:17:08.310 And then lastly, you know, the federal lifeline support 02:17:08.310 --> 02:17:13.310 has been then reduced will recall 02:17:13.890 --> 02:17:16.650 that the FCC reduces subsidy by $2 02:17:17.830 --> 02:17:20.650 for service plans that did not meet 02:17:20.650 --> 02:17:22.333 its broadband service standards. 02:17:26.788 --> 02:17:27.621 And that was last year 02:17:29.841 --> 02:17:32.906 and it is poised to reduce it again by another $2 in 2021, 02:17:32.906 --> 02:17:36.500 bringing the current somebody that'll cost me $7 02:17:37.544 --> 02:17:40.789 between $5.25 and 25 cents. 02:17:40.789 --> 02:17:43.490 We previously found 02:17:43.490 --> 02:17:48.020 that the wireline providers would raise their rates 02:17:48.020 --> 02:17:49.230 for voice services. 02:17:49.230 --> 02:17:52.200 If we did not place the federal support. 02:17:52.200 --> 02:17:54.760 And we noted that waterline which is, 02:17:54.760 --> 02:17:56.890 would not be able to avoid these rate increase. 02:17:56.890 --> 02:18:00.930 So we concluded that replacing that little support 02:18:00.930 --> 02:18:04.920 for wireline participants without the placing of the small 02:18:04.920 --> 02:18:09.437 for wireless, for purchasing would not violate the more that 02:18:10.523 --> 02:18:15.523 in other words, the providers for wireline needed some help. 02:18:15.820 --> 02:18:18.550 The wireless did not. 02:18:18.550 --> 02:18:20.090 Again, we're talking about last year. 02:18:20.090 --> 02:18:25.090 So we did a fill in the gap for that initial $2. 02:18:25.650 --> 02:18:30.570 Now we all committed to looking at well 02:18:30.570 --> 02:18:35.570 what happens as the federal subsidies continue to decline? 02:18:35.650 --> 02:18:39.920 So in assessing that our shrimp proposal included estimates 02:18:39.920 --> 02:18:43.330 of the cost of program of replacing the $2 02:18:43.330 --> 02:18:47.870 or $4 at the federal lifeline subsidy reduction. 02:18:47.870 --> 02:18:50.810 And we reviewed the party comments arguing 02:18:50.810 --> 02:18:53.979 against the level of companies provided by the program. 02:18:53.979 --> 02:18:58.550 And before addressing the surcharge issue, 02:18:58.550 --> 02:19:01.150 a consumer advocate parties noted 02:19:01.150 --> 02:19:04.010 that the pendant recession conditions warranted 02:19:05.240 --> 02:19:07.700 in limited extension of this supplemental copy 02:19:07.700 --> 02:19:11.060 but that this approach should be reviewed again next year 02:19:11.060 --> 02:19:13.030 and one that economic conditions 02:19:13.030 --> 02:19:16.438 and longer term impact on the program budget. 02:19:16.438 --> 02:19:19.135 So we agree with this assessment 02:19:19.135 --> 02:19:22.880 we'll continue to replace the $2 02:19:23.740 --> 02:19:26.400 but not the whole core dollars 02:19:26.400 --> 02:19:29.557 for wireline participants or end of the year. 02:19:29.557 --> 02:19:34.557 We will revisit this issue when considering the soapy level 02:19:35.120 --> 02:19:38.470 for next year, we anticipate 02:19:38.470 --> 02:19:40.890 that providers will still be able to 02:19:40.890 --> 02:19:43.675 offer the lifeline program, 02:19:43.675 --> 02:19:48.221 affordable options outlined in this PV. 02:19:48.221 --> 02:19:52.200 So in conclusion, I would like to thank our lifeline team 02:19:52.200 --> 02:19:54.820 on this effort to bring broadband 02:19:54.820 --> 02:19:58.501 into the program, modernizing our California lifeline. 02:19:58.501 --> 02:20:03.501 And we are also updating the measure grade versus flat rate. 02:20:06.520 --> 02:20:10.239 We you're addressing the federal subsidies. 02:20:10.239 --> 02:20:14.041 And I would like to thank our 02:20:14.041 --> 02:20:18.038 communications division lifeline team that worked 02:20:18.038 --> 02:20:22.000 on this PD, including Jonathan Lackritz, Cheryl Atari 02:20:22.000 --> 02:20:27.000 Wurster Joanna Green, Robert Samson, Caitlin Jones 02:20:27.370 --> 02:20:31.293 and Tina Lee, as well as our legal support to me. 02:20:32.460 --> 02:20:36.490 And again, a big shout out 02:20:36.490 --> 02:20:39.970 to our Administrative Law Judge, Stephanie Wong. 02:20:39.970 --> 02:20:44.970 We just did in my view, some incredible work in navigating 02:20:45.200 --> 02:20:48.440 through the complexities of the program. 02:20:48.440 --> 02:20:52.000 And I want to acknowledge and thank my bag 02:20:52.000 --> 02:20:56.100 of keen partner, fellow Commissioner Rechtschaffen 02:20:56.100 --> 02:20:59.400 for your assistance in bringing forth this proposal 02:20:59.400 --> 02:21:01.794 and your team share a shrub, Stephanie Crespin. 02:21:01.794 --> 02:21:03.431 And then my advisor advisory turned Shia 02:21:03.431 --> 02:21:05.160 and my chief of staff. 02:21:05.160 --> 02:21:07.160 We want him to testify. 02:21:07.160 --> 02:21:09.023 So all of the words to bring this 02:21:09.023 --> 02:21:11.230 I proposed these additions to forward 02:21:11.230 --> 02:21:15.419 for a goat and to do it timely as we are still 02:21:15.419 --> 02:21:20.419 in the midst of this horrendous, COVID pandemic. 02:21:21.510 --> 02:21:23.952 So it's that I respectfully ask for your 02:21:23.952 --> 02:21:26.152 I vote on this proposed decision, thank you. 02:21:28.570 --> 02:21:30.870 Thank you very much, Commissioner Shiroma. 02:21:30.870 --> 02:21:32.972 Thank you for all of your hard work 02:21:32.972 --> 02:21:36.371 either extremely important reforms 02:21:36.371 --> 02:21:41.371 and modernizing a bit of the program. 02:21:41.870 --> 02:21:43.650 So I, I do appreciate it. 02:21:43.650 --> 02:21:45.534 I look forward to the day 02:21:45.534 --> 02:21:49.210 when we can offer a standalone high-capacity 02:21:49.210 --> 02:21:51.210 broadband service within lifeline 02:21:51.210 --> 02:21:54.195 but these are important reforms that are being made. 02:21:54.195 --> 02:21:58.580 Appreciate them greatly as always. 02:21:58.580 --> 02:21:59.853 I wish we could do more, 02:22:01.748 --> 02:22:04.115 but I don't appreciate the the backfilling 02:22:04.115 --> 02:22:07.656 that you're having to do because of the FCC cuts. 02:22:07.656 --> 02:22:10.370 So thank you very much for all the hard work, both you 02:22:10.370 --> 02:22:12.890 and Commissioner Guzman Aceves. 02:22:12.890 --> 02:22:14.770 'Cause I know this has been a lot of hard work 02:22:14.770 --> 02:22:18.810 and a lot of good thinking and appreciate it greatly. 02:22:18.810 --> 02:22:21.223 Are there any other comments on item nine? 02:22:22.960 --> 02:22:25.200 Yes, Commissioner Guzmzn Aceves. 02:22:26.440 --> 02:22:30.060 Briefly I want to underscore my thanks to you 02:22:30.060 --> 02:22:32.410 Commissioner Shiroma and Commissioner Guzman Aceves 02:22:32.410 --> 02:22:37.160 and this is a really important path breaking decision. 02:22:37.160 --> 02:22:39.130 You stated it very well, right 02:22:39.130 --> 02:22:42.250 at the start Californians need high 02:22:42.250 --> 02:22:45.490 quality broadband services now more than ever, 02:22:45.490 --> 02:22:47.531 especially in might've COVID 02:22:47.531 --> 02:22:52.135 And the pervasive digital divide that we've seen with COVID. 02:22:52.135 --> 02:22:56.691 And it's really historic that the idea that we are leaking 02:22:56.691 --> 02:22:58.730 we have cured subsidy rates 02:22:58.730 --> 02:23:00.908 and we're linking minimum service standards 02:23:00.908 --> 02:23:05.250 to those rates to really, really, 02:23:05.250 --> 02:23:09.040 important decision will go a long way to help them ensure 02:23:09.040 --> 02:23:12.840 that the customers on the lifeline program received 02:23:12.840 --> 02:23:15.800 the higher quality service that they deserve 02:23:15.800 --> 02:23:18.169 and that they need in today's economy. 02:23:18.169 --> 02:23:20.843 So thank you very, very much for your work on this. 02:23:29.330 --> 02:23:31.890 I didn't realize I muted. Sorry. 02:23:31.890 --> 02:23:33.692 Thank you Commissioner Rechtschaffen 02:23:33.692 --> 02:23:36.130 and Commissioner Guzman Aceves. 02:23:36.130 --> 02:23:38.470 Thank you President Batjer. 02:23:38.470 --> 02:23:41.030 I want to really think Commissioner Shiroma, 02:23:41.030 --> 02:23:45.890 I think that I have done no work on this really. 02:23:45.890 --> 02:23:50.080 I've been able to share some thoughts and ideas 02:23:50.080 --> 02:23:53.260 and it's been such a privilege to have her consider 02:23:53.260 --> 02:23:55.820 so many of them, as you guys know 02:23:55.820 --> 02:23:59.388 I often have many ideas that are a stretch 02:23:59.388 --> 02:24:04.388 but this is such a big stride in the program just yesterday. 02:24:04.500 --> 02:24:06.894 In fact, Commissioner Shiroma corrected one 02:24:06.894 --> 02:24:11.350 of our very renowned thought leaders flare 11th 02:24:11.350 --> 02:24:14.420 where she said well, he was basically saying, 02:24:14.420 --> 02:24:18.074 we need more out of the ISP affordable plan 02:24:18.074 --> 02:24:21.210 because lifeline isn't doing it. 02:24:21.210 --> 02:24:24.610 And she said, well, well, well, well we're going to do it. 02:24:24.610 --> 02:24:29.120 So she very politely corrected in that in California. 02:24:29.120 --> 02:24:31.460 We're gonna lead this transition 02:24:31.460 --> 02:24:34.860 and it's so much more than a transition really, 02:24:34.860 --> 02:24:39.860 but just the recognition that this program could do so much 02:24:39.990 --> 02:24:42.920 more for Californians broadband needs today 02:24:42.920 --> 02:24:45.973 and the big, big step this is taking forward. 02:24:45.973 --> 02:24:49.300 And I just I do want to acknowledge all the tremendous 02:24:49.300 --> 02:24:52.591 amount of work of everyone you've already mentioned 02:24:52.591 --> 02:24:56.850 but certainly my judge wrong and her steadfast 02:24:57.870 --> 02:25:01.300 you know, just kept the pace as the amount 02:25:01.300 --> 02:25:03.930 of work she, and all the advisors and all the folks 02:25:03.930 --> 02:25:08.750 in CD have done is really, really, really tremendous. 02:25:08.750 --> 02:25:10.510 And I'll just say that 02:25:10.510 --> 02:25:12.920 I think the thing I'm really most excited 02:25:12.920 --> 02:25:17.920 about is the wireline voice component, the bundled offering 02:25:18.220 --> 02:25:23.220 for customers to sign up to that front tier bundled package 02:25:23.350 --> 02:25:27.430 that 80 and T bundle package and charter and Cox. 02:25:27.430 --> 02:25:31.550 And I really hope that those providers engage 02:25:31.550 --> 02:25:34.333 in this offering and make it all that it can be. 02:25:34.333 --> 02:25:39.333 And as you continue to review, as you said in your, 02:25:39.670 --> 02:25:42.210 also in your adoptive approach to this program, 02:25:42.210 --> 02:25:45.350 so thank you so much Commissioner Shiroma 02:25:45.350 --> 02:25:46.490 for bringing this forward 02:25:46.490 --> 02:25:49.550 and all of the folks that you've already think. 02:25:49.550 --> 02:25:52.833 I I'm truly excited to be voting on this today. 02:25:56.100 --> 02:25:59.423 I agree with you, Commissioner Randolph. 02:26:01.500 --> 02:26:02.333 Thank you. 02:26:02.333 --> 02:26:06.380 I just wanted to as everyone else did to 02:26:06.380 --> 02:26:08.290 thank Commissioner Shiroma and the team 02:26:08.290 --> 02:26:13.290 for all this work, and I just wanted to emphasize what, 02:26:13.400 --> 02:26:15.788 how important this decision is 02:26:15.788 --> 02:26:18.609 in terms of showing the innovative spirit 02:26:18.609 --> 02:26:21.389 in our communications division 02:26:21.389 --> 02:26:24.781 in terms of, you know, we really 02:26:24.781 --> 02:26:29.310 everybody talked about how important these, the decision is 02:26:29.310 --> 02:26:33.910 on these big questions, like improving accessibility 02:26:33.910 --> 02:26:37.180 but also just, you know, the tweak they made 02:26:37.180 --> 02:26:39.300 on the measure rate, measured rate issue 02:26:39.300 --> 02:26:42.470 you know, saving some money, recognizing that 02:26:42.470 --> 02:26:45.760 you know, over 80% of the customers weren't, you know 02:26:45.760 --> 02:26:49.420 using this feature and that it just made more sense 02:26:49.420 --> 02:26:52.310 than was more streamlined to just eliminate 02:26:52.310 --> 02:26:53.630 the measure great. 02:26:53.630 --> 02:26:57.100 And so I just, I really appreciate that careful attention 02:26:57.100 --> 02:27:00.033 to detail and thoughtfulness that goes into, you know, 02:27:00.033 --> 02:27:02.060 thinking about these programs 02:27:02.060 --> 02:27:04.860 and thinking about the, both the big and the small pictures. 02:27:04.860 --> 02:27:06.040 So thank you very much. 02:27:06.040 --> 02:27:08.440 I'm looking forward to supporting this decision. 02:27:10.530 --> 02:27:12.177 Thank you, Commissioner Randolph. 02:27:12.177 --> 02:27:14.870 Are there any other comments? 02:27:14.870 --> 02:27:19.870 Okay great. See none, let's call the roll agenda. 02:27:21.600 --> 02:27:23.803 Excuse me. Commissioner Sharoma. 02:27:24.940 --> 02:27:26.270 Aye. 02:27:26.270 --> 02:27:28.575 Commissioner Guzman Aceves. 02:27:28.575 --> 02:27:30.210 Aye. 02:27:30.210 --> 02:27:32.071 Commissioner Randolph. 02:27:32.071 --> 02:27:33.557 Yes. 02:27:33.557 --> 02:27:35.332 Commissioner Rechtschaffen. 02:27:35.332 --> 02:27:36.353 Yes. 02:27:37.390 --> 02:27:39.570 President Batjer. 02:27:39.570 --> 02:27:41.950 Yes. The vote is unanimous. 02:27:41.950 --> 02:27:42.960 Thank you very much. 02:27:42.960 --> 02:27:47.275 And congratulations, Commissioner Shiroma. (laughs) 02:27:47.275 --> 02:27:51.890 We had talked about having a lunch break at 12:30, 02:27:51.890 --> 02:27:56.230 but I'm going to turn to my fellow Commissioners 02:27:56.230 --> 02:28:01.230 and ask if we can complete the rest of the regular agenda 02:28:01.501 --> 02:28:05.513 or should we take a little break now? 02:28:08.850 --> 02:28:11.050 If we need to complete the regular agenda, 02:28:11.050 --> 02:28:13.649 but I'm easy either way. 02:28:13.649 --> 02:28:15.533 Yeah, likewise. 02:28:16.390 --> 02:28:18.723 Okay, let's continue. 02:28:21.041 --> 02:28:25.090 Okay. We're moving on now to item number 10. 02:28:25.090 --> 02:28:28.610 And that is Commissioner Guzman Aceves. 02:28:28.610 --> 02:28:31.010 Thank you, President Batjer. 02:28:31.010 --> 02:28:32.720 This rule making is dealing 02:28:32.720 --> 02:28:37.437 with the incarcerated people's communication issues 02:28:37.437 --> 02:28:40.690 and we will be determining whether to 02:28:40.690 --> 02:28:43.556 regulate the companies that provide communication service 02:28:43.556 --> 02:28:46.690 for voice and video calling to the people 02:28:46.690 --> 02:28:49.090 that are incarcerated in California's jails 02:28:49.090 --> 02:28:52.010 and prisons and juvenile halls. 02:28:52.010 --> 02:28:53.738 By now it's no secret that incarcerated 02:28:53.738 --> 02:28:57.172 people tend to pay unconscionable rates to communicate 02:28:57.172 --> 02:29:00.240 with the outside world. 02:29:00.240 --> 02:29:02.910 Who's has terrible negative effects on incarcerated people 02:29:02.910 --> 02:29:06.530 themselves, making it harder for them to get legal advice 02:29:06.530 --> 02:29:10.430 and to speak to their loved ones, which fosters recidivism 02:29:11.415 --> 02:29:13.840 and makes jails and prisons less safe. 02:29:13.840 --> 02:29:16.128 And it has a terrible effect on the families 02:29:16.128 --> 02:29:20.053 parents, partners, and children of incarcerated people. 02:29:20.053 --> 02:29:23.710 Nationwide, there are almost 3 million children 02:29:23.710 --> 02:29:25.758 with at least one incarcerated parents 02:29:25.758 --> 02:29:29.440 and those children have much higher rates of truancy 02:29:29.440 --> 02:29:32.113 depression, and poor school performance 02:29:32.113 --> 02:29:35.233 and children wouldn't, without an incarcerated parents. 02:29:36.130 --> 02:29:40.440 In California, the average cost of a 15 minute phone call 02:29:40.440 --> 02:29:43.293 from a jail or prison is $1.03. 02:29:44.914 --> 02:29:47.750 Maybe that doesn't sound so bad 02:29:47.750 --> 02:29:51.393 but that average height, a lot of variation. 02:29:51.393 --> 02:29:56.393 If you're in Clovis a 15 minute call, there costs $26.75, 02:29:59.320 --> 02:30:02.710 Newport beach, 15 minute call, $18.75, 02:30:05.110 --> 02:30:10.110 Fremont, $17.75 and so on. 02:30:10.154 --> 02:30:14.390 Juvenile facilities, as I mentioned are also not immune 02:30:14.390 --> 02:30:18.020 in San Benito County, a 15 minute call 02:30:18.020 --> 02:30:19.740 from an incarcerated youth 02:30:19.740 --> 02:30:23.713 to their family costs $13.65. 02:30:25.080 --> 02:30:28.092 Telephone service is a public utility service 02:30:28.092 --> 02:30:31.440 and we have a statutory mandate to ensure 02:30:31.440 --> 02:30:34.878 that the rates paid by all public utility customers 02:30:34.878 --> 02:30:37.940 including telephone customers are just 02:30:37.940 --> 02:30:40.480 and reasonable, but we have never 02:30:40.480 --> 02:30:43.660 regulated the companies that provide telephone service 02:30:43.660 --> 02:30:46.900 in jails and prisons and juvenile halls. 02:30:46.900 --> 02:30:50.330 Despite the fact that many of them hold certificates 02:30:50.330 --> 02:30:53.738 of public convenience and necessity from us. 02:30:53.738 --> 02:30:55.180 I want to make it clear 02:30:55.180 --> 02:30:58.310 that this is just the beginning of the proceeding. 02:30:58.310 --> 02:31:00.570 We will develop a factual record 02:31:00.570 --> 02:31:03.578 and reach a decision that's based on the record, 02:31:03.578 --> 02:31:07.110 but I have already a hard time seeing how I 02:31:07.110 --> 02:31:10.070 15 minute call costing $30 could be 02:31:10.070 --> 02:31:11.843 considered just reasonable. 02:31:12.694 --> 02:31:15.890 This summer we have seen a great debate about the nature 02:31:15.890 --> 02:31:19.590 of the role of the criminal justice system in our society. 02:31:19.590 --> 02:31:21.440 There are no easy answers here 02:31:21.440 --> 02:31:24.350 and reasonable minds can disagree 02:31:24.350 --> 02:31:26.413 but I hope we can all agree on this, 02:31:26.413 --> 02:31:29.340 incarcerated people are people. 02:31:29.340 --> 02:31:31.090 They are Californians. 02:31:31.090 --> 02:31:32.350 They are rate payers 02:31:32.350 --> 02:31:35.200 and they have not lost the legal protections afforded 02:31:35.200 --> 02:31:37.490 to them as rate payers. 02:31:37.490 --> 02:31:40.670 And this Commission therefore has a legal obligation. 02:31:40.670 --> 02:31:42.890 And I think a moral duty to ensure 02:31:42.890 --> 02:31:44.373 that they are treated fairly. 02:31:45.760 --> 02:31:47.890 So that's the problem we're trying to solve 02:31:47.890 --> 02:31:49.410 in this proceeding. 02:31:49.410 --> 02:31:51.710 We will take a broader approach to solve it. 02:31:51.710 --> 02:31:54.810 We have not predetermined any outcomes we want to hear 02:31:54.810 --> 02:31:57.020 from a wide range of participants 02:31:57.020 --> 02:32:00.860 including the telecommunications industry, advocacy groups 02:32:00.860 --> 02:32:04.000 local governments, and members of the public. 02:32:04.000 --> 02:32:05.850 We will be asking those participants to 02:32:05.850 --> 02:32:08.320 answer four questions that those boil 02:32:08.320 --> 02:32:10.980 down to whether we should set rate caps 02:32:10.980 --> 02:32:13.740 and limit these for interest state calling 02:32:13.740 --> 02:32:16.216 from California jails and prisons. 02:32:16.216 --> 02:32:18.430 With the answer to those questions 02:32:18.430 --> 02:32:20.980 we'll be able to further refine our proceeding 02:32:20.980 --> 02:32:23.140 and hopefully reach a solution 02:32:23.140 --> 02:32:27.150 to the problem we've identified as always. 02:32:27.150 --> 02:32:28.250 This is a team effort. 02:32:30.653 --> 02:32:33.000 And I would say my Bagley keen partner here 02:32:33.000 --> 02:32:36.060 Commissioner Shiroma which I hope I know 02:32:36.060 --> 02:32:39.710 will share her passion and greater knowledge 02:32:39.710 --> 02:32:42.950 on this issue than anyone could have anticipated. 02:32:42.950 --> 02:32:45.170 And it's really, I've been an honor to work 02:32:45.170 --> 02:32:49.020 with her and her advisors long testify and turn shy. 02:32:49.020 --> 02:32:52.620 She in particular, I also want to thank 02:32:52.620 --> 02:32:54.110 you know, I want to say before 02:32:54.110 --> 02:32:56.340 I thank some of the critical people that have gotten us 02:32:56.340 --> 02:33:00.100 to this point that this was not my idea. 02:33:00.100 --> 02:33:01.854 This idea has been here 02:33:01.854 --> 02:33:06.410 before me many people raise this issue even 02:33:06.410 --> 02:33:08.230 during our environmental justice 02:33:08.230 --> 02:33:10.633 and social justice action plan. 02:33:10.633 --> 02:33:13.076 So I'm not gonna 02:33:13.076 --> 02:33:15.760 I know I'm going to miss people is what I'm saying 02:33:15.760 --> 02:33:18.070 because so many people have been calling 02:33:18.070 --> 02:33:20.700 for the Commission to address this issue even 02:33:20.700 --> 02:33:23.003 before us getting here. 02:33:24.198 --> 02:33:26.190 But in terms of the work, 02:33:26.190 --> 02:33:28.260 the folks has really been leading a lot 02:33:28.260 --> 02:33:31.740 of this data gathering and review of these companies. 02:33:31.740 --> 02:33:33.732 'Cause there's only a handful 02:33:33.732 --> 02:33:36.730 of them starting with the communications division. 02:33:36.730 --> 02:33:39.630 Eric Walmack has been tremendous 02:33:39.630 --> 02:33:44.130 in his team, coward, surly and Amy loud. 02:33:44.130 --> 02:33:47.330 They've all been working tremendously and bringing a lot 02:33:47.330 --> 02:33:52.160 of insight and worked really on a very tight timeline 02:33:52.160 --> 02:33:55.090 once they were assigned the communications director 02:33:55.090 --> 02:33:57.910 of course, Rob Osborne and Michael Minkus. 02:33:57.910 --> 02:34:00.970 My former advisor who really helped educate me 02:34:00.970 --> 02:34:04.270 on this issue and the role we had the obligation to 02:34:04.270 --> 02:34:08.810 take this on I'm assistant general counsel, Pella 02:34:08.810 --> 02:34:12.963 Miscavige, and GK guy out of though for his tremendous work 02:34:12.963 --> 02:34:15.440 and all the Administrative Law Judges 02:34:15.440 --> 02:34:18.620 including Katherine MacDonald, Anthony Colbert 02:34:18.620 --> 02:34:22.580 and Kathy Folwell for really bringing this across. 02:34:22.580 --> 02:34:25.850 And finally to my staff, Stephanie Gustine, Sarah Sharp 02:34:25.850 --> 02:34:29.750 and Jonathan Colts for all of their work on this. 02:34:29.750 --> 02:34:30.670 So thank you very much. 02:34:30.670 --> 02:34:34.680 And I am very excited to get this proceeding off the ground. 02:34:34.680 --> 02:34:35.513 Thank you. 02:34:36.530 --> 02:34:38.250 Thank you Commissioner Guzman Aceves. 02:34:38.250 --> 02:34:39.720 Yes, Commissioner Shiroma. 02:34:41.370 --> 02:34:42.880 Thank you, President Batjer. 02:34:42.880 --> 02:34:46.341 And thank you, Commissioner Guzman Aceves. 02:34:46.341 --> 02:34:50.991 Yes. The opening of this OER is it's timely. 02:34:50.991 --> 02:34:51.910 It's overdue. 02:34:51.910 --> 02:34:55.490 We need to analyze and address these high fees charged 02:34:55.490 --> 02:35:00.490 for instate interstate calling in our jails and prisons. 02:35:01.585 --> 02:35:03.690 You know, it's timely 02:35:03.690 --> 02:35:07.130 in that during this COVID-19 pandemic, our prisons 02:35:07.130 --> 02:35:12.130 and jails have been hit terribly by the virus, which has led 02:35:12.430 --> 02:35:17.430 to widespread restrictions in order to limit the spread. 02:35:18.650 --> 02:35:21.090 When it's on visitations 02:35:21.090 --> 02:35:24.040 this has prevented those who are incarcerated 02:35:24.040 --> 02:35:28.280 and their families from receiving the emotional support. 02:35:28.280 --> 02:35:32.131 That's so important that comes from those familial bonds 02:35:32.131 --> 02:35:36.185 which are essential for personal recovery. 02:35:36.185 --> 02:35:38.760 And this is during a time when our country 02:35:38.760 --> 02:35:42.217 and world are suffering terribly, and many 02:35:43.090 --> 02:35:48.090 of us have friends, family members who've been incarcerated. 02:35:48.940 --> 02:35:50.672 I am no different. 02:35:50.672 --> 02:35:55.672 And that family bond is so essential. 02:35:56.510 --> 02:35:57.343 This is what we do. 02:35:57.343 --> 02:35:59.650 And that data has shown that California incarcerated 02:35:59.650 --> 02:36:02.660 calling rates are among the highest in the country. 02:36:02.660 --> 02:36:04.740 Shockingly, the shocking to see 02:36:04.740 --> 02:36:09.628 that somebody was being charged $26 for a 15 minute call 02:36:09.628 --> 02:36:14.628 and that's 190 jails and prison facilities 02:36:14.730 --> 02:36:19.720 in California are charging over the FCC cap of $3 02:36:22.170 --> 02:36:24.113 and 50 cents for a 15 minute call. 02:36:25.130 --> 02:36:28.160 California has taken some big steps 02:36:28.160 --> 02:36:31.140 this legislative session to address bias 02:36:31.140 --> 02:36:33.080 in the criminal justice system, including 02:36:33.080 --> 02:36:38.080 Governor Noosa explaining the racial justice act AB 2542 02:36:38.210 --> 02:36:42.406 by informed woman Ash called up WC and signed this 02:36:42.406 --> 02:36:45.780 before the deadline of September 30th. 02:36:45.780 --> 02:36:48.240 But we do know that racial minorities 02:36:48.240 --> 02:36:51.264 and low income people are already disproportionally affected 02:36:51.264 --> 02:36:52.730 by the justice system. 02:36:52.730 --> 02:36:55.640 And as such are disproportionally affected 02:36:55.640 --> 02:36:59.816 by these high rates and the FCC who don't usually look to 02:36:59.816 --> 02:37:04.482 as showing leadership of a day are doing their part on this 02:37:04.482 --> 02:37:07.010 by opening a little making on 02:37:07.010 --> 02:37:09.170 interstate incarcerated calling. 02:37:09.170 --> 02:37:10.003 And they have called 02:37:10.003 --> 02:37:14.964 upon States who regulate the 80% 02:37:14.964 --> 02:37:18.561 or so of the calls from incarcerated persons. 02:37:18.561 --> 02:37:23.561 They have called upon States to do their part. 02:37:23.980 --> 02:37:26.819 And so this is a very important step for the CPC 02:37:26.819 --> 02:37:30.160 to take this very important step. 02:37:30.160 --> 02:37:32.380 So thank you, Commissioners Guzman Aceves 02:37:32.380 --> 02:37:36.543 for your leadership on this to ALJ the team. 02:37:37.620 --> 02:37:39.573 Commissioner Guzman Aceves outlined, 02:37:41.186 --> 02:37:42.670 and I do want to do another shout 02:37:43.561 --> 02:37:45.130 out for our legal team, Helen Miscavige 02:37:45.130 --> 02:37:50.130 and in vacate guzzle, look forward to working on this OIR. 02:37:50.480 --> 02:37:51.313 Thank you. 02:37:52.756 --> 02:37:54.504 Thank you, Commissioner Shiroma. 02:37:54.504 --> 02:37:56.605 Commissioner Guzman Aceves 02:37:56.605 --> 02:38:00.170 outlined strong voice of thank you. 02:38:00.170 --> 02:38:03.120 I have a long, I'm just going to say it. 02:38:03.120 --> 02:38:05.850 I have long hated this policy, my public service 02:38:05.850 --> 02:38:09.700 and stayed into that as well as here in California 02:38:09.700 --> 02:38:14.443 where I've just never understood how we can, how we 02:38:15.970 --> 02:38:20.210 as a society can treat the incarcerated individuals this way 02:38:20.210 --> 02:38:21.240 and their families 02:38:23.131 --> 02:38:27.090 and that the model of how, where this money goes 02:38:27.090 --> 02:38:30.220 and what budgets it supports has got to 02:38:31.603 --> 02:38:33.743 I think, needs to be carefully looked at. 02:38:35.400 --> 02:38:39.040 So I really appreciate that we are taking this step. 02:38:39.040 --> 02:38:42.560 It's incredibly important and I look forward 02:38:42.560 --> 02:38:47.560 to the efforts that this Hawaii will be ushering in. 02:38:47.830 --> 02:38:49.443 So thank you. 02:38:50.750 --> 02:38:53.693 Any other comments on this item? 02:38:55.810 --> 02:38:57.133 Okay, seeing none. 02:38:58.398 --> 02:39:00.230 No, the agenda clerk, please call the roll 02:39:00.230 --> 02:39:02.093 on item number 10. 02:39:03.601 --> 02:39:05.434 Commissioner Shiroma. 02:39:05.434 --> 02:39:07.092 Aye. 02:39:07.092 --> 02:39:08.656 Commissioner Guzman Aceves. 02:39:08.656 --> 02:39:09.489 Aye. 02:39:10.710 --> 02:39:13.150 Commissioner Randolph. 02:39:13.150 --> 02:39:15.317 (mumbles) 02:39:16.370 --> 02:39:18.380 Commissioner Rechtschaffen. 02:39:18.380 --> 02:39:19.890 Yes. 02:39:19.890 --> 02:39:21.083 President Batjer. 02:39:21.083 --> 02:39:25.200 It's very enthusiastic. Yes, thank you. 02:39:25.200 --> 02:39:27.030 The vote is unanimous on item. 02:39:27.030 --> 02:39:30.203 Number 10, moving now to item number 12. 02:39:31.830 --> 02:39:33.160 Commissioner Guzman Aceves. 02:39:33.160 --> 02:39:34.800 This is yours as well. 02:39:34.800 --> 02:39:36.333 Yes. Thank you. 02:39:36.333 --> 02:39:39.520 This is a extension statutory deadline 02:39:39.520 --> 02:39:42.080 for a proceeding dealing 02:39:42.080 --> 02:39:44.785 with demand response per habited resources. 02:39:44.785 --> 02:39:48.670 And there is a still more work to be done 02:39:48.670 --> 02:39:51.880 on the proceeding related to data loggers 02:39:51.880 --> 02:39:56.690 and metrics on how we can do the verification plans 02:39:56.690 --> 02:39:58.780 on these prohibited resources. 02:39:58.780 --> 02:40:02.370 So I'm asking for an extension to be able to work 02:40:02.370 --> 02:40:04.890 through this very technical area 02:40:04.890 --> 02:40:08.110 and to present a PD next year. 02:40:08.110 --> 02:40:12.660 So I'm asking for an extension until April of 2021. 02:40:12.660 --> 02:40:13.493 Thank you. 02:40:14.920 --> 02:40:16.800 Thank you, Commissioner Guzman Aceves. 02:40:16.800 --> 02:40:18.203 Any comments or questions? 02:40:19.500 --> 02:40:22.680 Okay. Seeing none will be agenda court. 02:40:22.680 --> 02:40:25.603 Please call the roll on item number 12. 02:40:27.150 --> 02:40:29.150 Commissioner Shiroma. 02:40:29.150 --> 02:40:30.530 Aye. 02:40:30.530 --> 02:40:32.734 Commissioner Guzman Aceves. 02:40:32.734 --> 02:40:33.907 Aye. 02:40:33.907 --> 02:40:35.303 Commissioner Randolph. 02:40:36.648 --> 02:40:37.481 Yes. 02:40:38.446 --> 02:40:40.228 Commissioner Rechtschaffen. 02:40:40.228 --> 02:40:41.061 Yes. 02:40:41.929 --> 02:40:43.200 President Batjer. 02:40:43.200 --> 02:40:45.940 Yes. The vote is unanimous on item number 12. 02:40:45.940 --> 02:40:47.309 Thank you. 02:40:47.309 --> 02:40:49.513 Moving to item number 13, Commissioner Randolph. 02:40:51.360 --> 02:40:54.299 This is a proposed decision 02:40:54.299 --> 02:40:57.200 to extend a statutory deadline. 02:40:57.200 --> 02:41:01.570 It's a complaint case that involves allocating the cost 02:41:01.570 --> 02:41:05.090 of a water main in the new building development at the close 02:41:05.090 --> 02:41:08.330 of the hearing, the complainant asked for a delay 02:41:08.330 --> 02:41:12.070 in the briefing schedule, the Administrative Law Judge 02:41:12.070 --> 02:41:16.000 granted that extension, that extension of time. 02:41:16.000 --> 02:41:17.440 Plus the complications brought 02:41:17.440 --> 02:41:21.420 out, brought about by the pandemic require an extension 02:41:21.420 --> 02:41:24.997 of the statutory deadline to December 4th, to allow time 02:41:24.997 --> 02:41:26.950 for the ALJ to issue a presiding 02:41:26.950 --> 02:41:30.410 officer's decision parties to potentially file appeals 02:41:30.410 --> 02:41:32.970 and the Commission to review the 02:41:32.970 --> 02:41:35.530 modified providing officer's decision. 02:41:35.530 --> 02:41:37.543 I asked for your support of item 13. 02:41:38.470 --> 02:41:40.763 Thank you. Any questions on item number 13? 02:41:41.860 --> 02:41:44.210 Okay, seeing none, we'll the agenda clerk 02:41:44.210 --> 02:41:45.260 please call the roll. 02:41:46.198 --> 02:41:48.178 Commissioner Shiroma. 02:41:48.178 --> 02:41:49.230 Aye. 02:41:49.230 --> 02:41:51.646 Commissioner Guzman Aceves. 02:41:51.646 --> 02:41:52.479 Aye. 02:41:53.672 --> 02:41:55.677 Commissioner Randolph. 02:41:55.677 --> 02:41:56.510 Yes. 02:41:57.389 --> 02:41:58.763 Commissioner Rechtschaffen. 02:41:58.763 --> 02:42:01.102 Yes. 02:42:01.102 --> 02:42:03.150 President Batjer. 02:42:03.150 --> 02:42:06.240 Yes. The vote is unanimous on item number 13. 02:42:06.240 --> 02:42:09.053 Moving now to item 14, Commissioner Randolph. 02:42:10.430 --> 02:42:11.910 This is another complaint case. 02:42:11.910 --> 02:42:14.220 It's an expedited complaint proceeding 02:42:14.220 --> 02:42:16.430 concerning a customer's participation 02:42:16.430 --> 02:42:18.820 in the California alternative rates 02:42:18.820 --> 02:42:21.130 for energy or care program 02:42:21.130 --> 02:42:24.049 and disputed charges over a four month billing period. 02:42:24.049 --> 02:42:26.720 Although an expedited complaint 02:42:26.720 --> 02:42:29.820 proceeding is not technically an adjudicatory proceeding 02:42:29.820 --> 02:42:31.550 as practice, we have added heat. 02:42:31.550 --> 02:42:32.383 We have adhered 02:42:32.383 --> 02:42:35.680 to the same deadlines as in an adjudicatory proceeding. 02:42:35.680 --> 02:42:39.810 So the statutory deadline would be October 15th, 2020. 02:42:39.810 --> 02:42:41.830 However the assigned administrative law 02:42:41.830 --> 02:42:43.930 judge requires additional time to 02:42:43.930 --> 02:42:45.660 prepare a proposed decision. 02:42:45.660 --> 02:42:47.670 So this order would extend the deadline 02:42:47.670 --> 02:42:50.260 to December 18th, 2020. 02:42:50.260 --> 02:42:52.283 And I ask for your support. Thank you. 02:42:53.150 --> 02:42:54.330 Thank you. 02:42:54.330 --> 02:42:57.133 Any questions or comments on item 14? 02:42:58.710 --> 02:43:00.190 Seeing none, will the agenda clerk 02:43:00.190 --> 02:43:02.384 please call the roll Commissioner. 02:43:02.384 --> 02:43:04.231 Commissioner Shiroma. 02:43:04.231 --> 02:43:05.310 Aye. 02:43:05.310 --> 02:43:07.290 Commissioner Guzman Aceves.. 02:43:07.290 --> 02:43:08.640 Aye. 02:43:08.640 --> 02:43:10.013 Commissioner Randolph. 02:43:10.013 --> 02:43:12.080 Yes. 02:43:12.080 --> 02:43:13.890 Commissioner Rechtschaffen. 02:43:13.890 --> 02:43:15.191 Yes. 02:43:15.191 --> 02:43:16.920 President Batjer. 02:43:16.920 --> 02:43:19.960 Yes. The vote is unanimous on item 14. 02:43:19.960 --> 02:43:23.167 Moving now to item 15, Commissioner Guzman Aceves. 02:43:24.330 --> 02:43:25.200 Thank you. 02:43:25.200 --> 02:43:29.096 Okay. This item is dealing with another statutory extension 02:43:29.096 --> 02:43:33.415 of a complaint Galasso versus Southern California Edison. 02:43:33.415 --> 02:43:36.811 Also an issue dealing with medical baseline rates 02:43:36.811 --> 02:43:40.203 care rates and all electric rate enrollment. 02:43:41.510 --> 02:43:43.660 Although both the complainant and the defendant 02:43:43.660 --> 02:43:46.930 have been working in good faith to attempt a settlement 02:43:46.930 --> 02:43:48.400 and the matter. 02:43:48.400 --> 02:43:51.249 And they have initiated the alternative dispute resolution 02:43:51.249 --> 02:43:53.380 because of COVID. 02:43:53.380 --> 02:43:55.580 And because specifically of the request 02:43:55.580 --> 02:43:59.690 of the complainant to have an in person meeting 02:43:59.690 --> 02:44:03.280 rather than a WebEx, we are working through the scheduling 02:44:03.280 --> 02:44:06.360 of that with the Administrative Law Judge. 02:44:06.360 --> 02:44:08.150 For that reason, I'm going to be asking 02:44:08.150 --> 02:44:12.640 for a 12 month extension on this, on this, excuse me 02:44:12.640 --> 02:44:17.230 a six month extension to resolve it by April of 2021. 02:44:19.640 --> 02:44:20.473 Thank you. 02:44:22.210 --> 02:44:25.580 Are there any comments or questions on item 15? 02:44:25.580 --> 02:44:28.875 I'm glad you moved that from 12 to six in your remarks. 02:44:28.875 --> 02:44:31.663 That made me both. 02:44:32.650 --> 02:44:33.920 Okay, seeing none 02:44:33.920 --> 02:44:36.563 will the agenda clerk please call the roll. 02:44:38.974 --> 02:44:40.652 Commissioner Shiroma. 02:44:40.652 --> 02:44:42.220 Aye. 02:44:42.220 --> 02:44:43.734 Commissioner Guzman Aceves. 02:44:43.734 --> 02:44:44.971 Aye. 02:44:44.971 --> 02:44:47.031 Commissioner Randolph. 02:44:47.031 --> 02:44:48.013 Yeah. 02:44:49.000 --> 02:44:50.915 Commissioner Rechtschaffen. 02:44:50.915 --> 02:44:52.646 Yes. 02:44:52.646 --> 02:44:54.540 President Batjer. 02:44:54.540 --> 02:44:57.190 Yes. The vote is unanimous on item 15. 02:44:57.190 --> 02:45:00.314 Moving now to item 16, Commissioner Guzman Aceves. 02:45:00.314 --> 02:45:04.670 Yes. This is a, another complaint. 02:45:04.670 --> 02:45:09.670 A case between utility telecom group, LLC against 02:45:11.557 --> 02:45:16.320 AT&T, the parties are looking to resolve the issue 02:45:16.320 --> 02:45:17.650 through mediation 02:45:17.650 --> 02:45:20.898 or through the alternative dispute resolution process. 02:45:20.898 --> 02:45:23.957 And I am asking to give them that time 02:45:23.957 --> 02:45:28.957 until April of next year. Thank you. 02:45:30.640 --> 02:45:32.850 Thank you. Any comments or questions? 02:45:32.850 --> 02:45:34.191 Okay, seeing none, 02:45:34.191 --> 02:45:35.953 will the agenda clerk please call the roll. 02:45:36.930 --> 02:45:38.622 Commissioner Shiroma. 02:45:38.622 --> 02:45:40.100 Aye. 02:45:40.100 --> 02:45:42.203 Commissioner Guzman Aceves. 02:45:42.203 --> 02:45:43.130 Aye. 02:45:43.130 --> 02:45:44.786 Commissioner Randolph. 02:45:44.786 --> 02:45:45.619 Yes. 02:45:47.248 --> 02:45:48.803 Commissioner Rechtschaffen. 02:45:48.803 --> 02:45:50.464 Yes. 02:45:50.464 --> 02:45:51.980 President Batjer. 02:45:51.980 --> 02:45:55.620 Yes. The vote is unanimous on item 16. 02:45:55.620 --> 02:45:58.530 That completes our regular agenda items. 02:45:58.530 --> 02:46:01.923 We will now take a 45 minute break. 02:46:01.923 --> 02:46:05.000 So it is now 12:45. 02:46:05.000 --> 02:46:07.730 We'll be back at 1:30. 02:46:07.730 --> 02:46:08.563 Thank you all. 02:46:12.000 --> 02:46:12.833 Thank you. 02:46:19.028 --> 02:46:19.984 Here. 02:46:19.984 --> 02:46:21.090 Commissioner Randolph. 02:46:21.090 --> 02:46:22.596 Here. 02:46:22.596 --> 02:46:24.059 Commissioner Rechtschaffen. 02:46:24.059 --> 02:46:26.323 Present. 02:46:26.323 --> 02:46:28.350 President Batjer. 02:46:28.350 --> 02:46:31.150 Here, we have established quorum. Thank you. 02:46:31.150 --> 02:46:33.620 There is, we're now moving on on our agenda 02:46:33.620 --> 02:46:35.112 to management reports 02:46:35.112 --> 02:46:38.330 and there is no report for item 17 report 02:46:38.330 --> 02:46:41.060 and discussion on recent consumer protection 02:46:41.060 --> 02:46:44.334 on safety activities management report. 02:46:44.334 --> 02:46:45.917 So we will move on 02:46:45.917 --> 02:46:50.260 and our agenda to agenda two Commissioner's report. 02:46:50.260 --> 02:46:52.700 And I'm going to start 02:46:52.700 --> 02:46:55.100 if it's okay with my fellow Commissioners today. 02:46:56.560 --> 02:47:01.020 As many of you know, the election is November 3rd, 2020 02:47:01.020 --> 02:47:02.620 which is less than a month away. 02:47:03.720 --> 02:47:05.511 If you have not registered to vote 02:47:05.511 --> 02:47:07.940 there is still time in California. 02:47:07.940 --> 02:47:12.940 The deadline to register is October 19th, October 19th 02:47:13.360 --> 02:47:17.610 please register voting is a fundamental process 02:47:17.610 --> 02:47:18.990 in our democracy. 02:47:18.990 --> 02:47:22.080 The right to vote for all eligible Americans 02:47:22.080 --> 02:47:23.560 was hard fought. 02:47:23.560 --> 02:47:26.660 Women were not allowed to vote until 1920. 02:47:26.660 --> 02:47:28.880 Although black American men were granted 02:47:28.880 --> 02:47:31.120 the right to vote in 1870. 02:47:31.120 --> 02:47:35.880 There were many barriers to discourage and prevent them 02:47:35.880 --> 02:47:40.500 from voting the voting rights act in 1965, removes some 02:47:40.500 --> 02:47:43.443 of these obstacles and granted all black Americans 02:47:43.443 --> 02:47:47.290 and other racial minorities, the right to vote. 02:47:47.290 --> 02:47:50.760 However, for many communities that are still barriers 02:47:50.760 --> 02:47:53.070 to voting the right to vote 02:47:53.070 --> 02:47:55.502 should never be taken for granted. 02:47:55.502 --> 02:47:58.920 Participating in elections provides an opportunity 02:47:58.920 --> 02:48:02.798 for us to have our voice on important issues 02:48:02.798 --> 02:48:07.220 and elect those who we wish to represent us. 02:48:07.220 --> 02:48:10.000 I encourage all eligible citizens to 02:48:10.000 --> 02:48:13.557 exercise their right to vote on November 3rd, please vote. 02:48:16.570 --> 02:48:18.740 For more information about registering 02:48:18.740 --> 02:48:20.940 to vote polling places 02:48:20.940 --> 02:48:23.490 and ballot measures for general election 02:48:23.490 --> 02:48:28.490 please visit the secretary of state's website at sos.ca.gov. 02:48:30.410 --> 02:48:32.820 I would also like to talk about the census 02:48:32.820 --> 02:48:37.010 because representation really matters, every 10 years 02:48:37.010 --> 02:48:42.010 the US Bureau of census conducted a count of every person 02:48:42.637 --> 02:48:46.440 in each of the 50 States and five territories 02:48:46.440 --> 02:48:49.743 as mandated by the United States constitution. 02:48:51.057 --> 02:48:54.610 The 2020 census data will be used to draw congressional 02:48:54.610 --> 02:48:57.960 and state legislative districts inform federal funding 02:48:57.960 --> 02:49:02.960 for each state and provide data that will impact communities 02:49:03.050 --> 02:49:04.393 for the next decade. 02:49:05.950 --> 02:49:09.180 Every year, billions of dollars in federal funding 02:49:09.180 --> 02:49:13.010 goes to schools roads, hospitals, fire departments 02:49:13.010 --> 02:49:15.700 and other important infrastructure programs 02:49:15.700 --> 02:49:18.150 based on the census data. 02:49:18.150 --> 02:49:22.770 The deadline to complete the census is October 31st, 2020. 02:49:22.770 --> 02:49:27.770 And you can do it online at 2020census.gov. 02:49:28.230 --> 02:49:31.110 I urge everyone to please fill 02:49:31.110 --> 02:49:35.110 out the sense that you have if you have not done so already 02:49:35.110 --> 02:49:36.052 it is critical to get a complete count of every person. 02:49:36.052 --> 02:49:41.052 Last week, my fellow Commissioners and I 02:49:43.090 --> 02:49:45.405 hosted another successful on bonk 02:49:45.405 --> 02:49:49.923 and supplier diversity with 520 people participating 02:49:49.923 --> 02:49:54.408 by the webcast and phone by way of background. 02:49:54.408 --> 02:49:57.950 The utility supplier diversity program was created 02:49:57.950 --> 02:49:59.760 as a voluntary program 02:49:59.760 --> 02:50:03.528 over three decades ago, via general order 156. 02:50:03.528 --> 02:50:06.280 This programming encourages 02:50:06.280 --> 02:50:10.610 California utilities to award a fair proportion of contracts 02:50:10.610 --> 02:50:15.310 and subcontracts for products to products and services 02:50:15.310 --> 02:50:19.321 to women, minority disabled veteran business enterprises 02:50:19.321 --> 02:50:21.650 and to members of the lesbian, gay, 02:50:21.650 --> 02:50:24.303 bisexual and transgender communities. 02:50:25.640 --> 02:50:27.340 The theme of this year is on bonk, 02:50:27.340 --> 02:50:30.360 was generating economic success 02:50:30.360 --> 02:50:32.980 during uncertain economic times. 02:50:32.980 --> 02:50:37.510 And over the course of three lively panel discussions 02:50:37.510 --> 02:50:41.330 we learned much about the successes and challenges with it 02:50:41.330 --> 02:50:46.330 with diversifying suppliers, particularly during COVID-19 02:50:46.364 --> 02:50:49.320 although the utilities are well 02:50:49.320 --> 02:50:52.660 exceeding their supplier diversity targets in aggregate. 02:50:52.660 --> 02:50:54.670 The unbank also highlighted the 02:50:54.670 --> 02:50:58.430 disproportionate challenges that diverse businesses face 02:50:58.430 --> 02:51:02.250 due to the pandemic, which make this work even more critical 02:51:02.250 --> 02:51:04.190 as we go forward. 02:51:04.190 --> 02:51:06.781 For example we heard from the California black chamber 02:51:06.781 --> 02:51:10.980 that nearly 40% of the black owned businesses may fall 02:51:10.980 --> 02:51:13.963 may fail as a result of the pandemic. 02:51:15.188 --> 02:51:18.024 We also learned of the challenges 02:51:18.024 --> 02:51:20.580 that utilities face in contracting 02:51:20.580 --> 02:51:24.250 with diverse suppliers in the vegetation management space 02:51:24.250 --> 02:51:28.710 as utilities, fire prevention, efforts, intensify 02:51:28.710 --> 02:51:32.180 as we continue to experience challenging economic times 02:51:32.180 --> 02:51:34.400 this event served to highlight that 02:51:34.400 --> 02:51:36.820 much work remains to be done, to maintain 02:51:36.820 --> 02:51:41.510 and build on the progress we've made thus far beyond. 02:51:41.510 --> 02:51:45.290 Bonk also provided us with an opportunity to remember 02:51:45.290 --> 02:51:48.310 and pay special tribute to the honorable Gwen Moore 02:51:48.310 --> 02:51:50.120 who recently passed. 02:51:50.120 --> 02:51:52.440 Ms. Moore served in the California assembly 02:51:52.440 --> 02:51:55.570 for 16 years, where she authored the 02:51:55.570 --> 02:51:59.643 legislation that established the supplier diversity program 02:51:59.643 --> 02:52:01.560 throughout her distinguished career. 02:52:01.560 --> 02:52:04.567 She acted as a champion for diversity in California. 02:52:04.567 --> 02:52:07.980 Well, she will be dearly missed. 02:52:07.980 --> 02:52:10.380 We will do our part to carry 02:52:10.380 --> 02:52:12.363 on her legacy through this program. 02:52:13.210 --> 02:52:16.600 Thanks again to all who participated and thanks 02:52:16.600 --> 02:52:21.060 to the team led by our own Stephanie Green for organizing 02:52:21.060 --> 02:52:25.690 and carrying out such a well organized informant events. 02:52:25.690 --> 02:52:29.770 And it was done all virtually, which was a real stretch 02:52:29.770 --> 02:52:33.140 for everybody, but it worked out and it worked out well. 02:52:33.140 --> 02:52:34.050 Now I will turn 02:52:34.050 --> 02:52:37.530 to my fellow Commissioners for their Commissioner's report. 02:52:37.530 --> 02:52:41.480 Thank you, would like to go next. 02:52:41.480 --> 02:52:42.730 Yes Commissioner Randolph 02:52:44.540 --> 02:52:45.884 Thank you, President Batjer. 02:52:45.884 --> 02:52:50.884 Just wanted to note that on October 15th, next week 02:52:51.990 --> 02:52:53.870 there will be a virtual workshop 02:52:53.870 --> 02:52:57.360 in the Aliso Canyon proceeding. 02:52:57.360 --> 02:52:59.410 This will be our third and final workshop 02:53:01.396 --> 02:53:02.823 on presenting the modeling results. 02:53:04.060 --> 02:53:06.370 And so it'll be an important discussion. 02:53:06.370 --> 02:53:10.370 The modelers will be there interacting with parties 02:53:10.370 --> 02:53:14.780 and discussing the results, and that will result 02:53:14.780 --> 02:53:18.660 in a workshop report to finalize the modeling 02:53:18.660 --> 02:53:23.360 and close out phase two of the proceeding. 02:53:23.360 --> 02:53:25.310 So it's a very important workshop 02:53:25.310 --> 02:53:28.776 and the consultants who are working with us on phase three 02:53:28.776 --> 02:53:30.720 the ones who will be working with us 02:53:30.720 --> 02:53:33.960 on establishing alternatives to Elisa will be present 02:53:33.960 --> 02:53:35.810 at the workshop as well. 02:53:35.810 --> 02:53:37.700 So I encourage those of you active 02:53:37.700 --> 02:53:40.300 in the proceeding to attend the workshop. 02:53:40.300 --> 02:53:41.300 Thank you very much. 02:53:43.070 --> 02:53:44.240 Important workshops. 02:53:44.240 --> 02:53:46.177 Thank you Commissioner Randolph 02:53:46.177 --> 02:53:47.927 Commissioner Shiroma. 02:53:49.920 --> 02:53:51.633 Yes. Thank you, President Batjer. 02:53:51.633 --> 02:53:53.040 I simply want to announce 02:53:53.040 --> 02:53:56.700 that we will be having public participation hearings 02:53:56.700 --> 02:54:01.700 in the Pacific gas and electric general rate case phase two 02:54:02.190 --> 02:54:06.283 and that's 19-11-19. 02:54:07.702 --> 02:54:10.550 They will be on Friday, November 6th at 2:00 p.m. 02:54:10.550 --> 02:54:12.520 and 6:00 p.m. 02:54:12.520 --> 02:54:14.090 They will be held virtually 02:54:14.090 --> 02:54:16.030 and we encourage all who are interested 02:54:16.030 --> 02:54:21.030 of course, to attend the logging information is available 02:54:21.160 --> 02:54:23.750 on our CPAC website. 02:54:23.750 --> 02:54:25.990 And there's also a contact 02:54:25.990 --> 02:54:30.760 for the public advisor's office who helped to put these 02:54:31.596 --> 02:54:33.820 on, but I do want to thank all of our staff 02:54:33.820 --> 02:54:38.090 in the ALJ division, the public advisor's office 02:54:38.090 --> 02:54:41.630 and information technology, Robert Stanford 02:54:41.630 --> 02:54:45.720 who does so much to make these voting meetings work 02:54:45.720 --> 02:54:48.215 Joe Hagan, and the whole team 02:54:48.215 --> 02:54:50.550 for the cross divisional effort 02:54:50.550 --> 02:54:54.133 to continue these essential public participation hearings 02:54:54.133 --> 02:54:58.610 and in an online format during this pandemic 02:54:58.610 --> 02:55:00.960 that way we can hear from the customers 02:55:00.960 --> 02:55:04.150 from the rate payers firsthand and they're common 02:55:04.150 --> 02:55:08.420 in pharma proceedings and we've had very good attendance 02:55:08.420 --> 02:55:12.060 at my other PPH is I'm sure the 02:55:12.060 --> 02:55:13.907 other Commissions that experienced the same thing 02:55:13.907 --> 02:55:15.530 in the online environment. 02:55:15.530 --> 02:55:18.540 It's actually easier to participate 02:55:18.540 --> 02:55:22.440 than having to drive some distance or take time 02:55:22.440 --> 02:55:27.440 off from them the evening when you're trying to spend it 02:55:28.380 --> 02:55:30.979 with your kids and family and so forth. 02:55:30.979 --> 02:55:35.979 So November six, 2:00 p.m. and 6:00 p.m. 02:55:37.558 --> 02:55:39.150 Thank you. 02:55:39.150 --> 02:55:41.633 Thank you Commissioner Shiroma. 02:55:41.633 --> 02:55:43.883 Commissioner Rechtschaffen. 02:55:46.200 --> 02:55:47.090 President Batjer. 02:55:47.090 --> 02:55:50.760 In addition to the summary that you provided about the bank. 02:55:50.760 --> 02:55:55.200 I want to highlight a couple of things we heard 02:55:55.200 --> 02:55:58.676 in the way of feedback for us to consider going forward. 02:55:58.676 --> 02:56:02.930 We heard from some of the advocates for veterans groups 02:56:02.930 --> 02:56:06.120 that they would like preference preferences 02:56:06.120 --> 02:56:11.120 or goals, even if, if they, if they're not disabled 02:56:11.310 --> 02:56:14.365 and both the disabled and the LGBTQ communities have argued 02:56:14.365 --> 02:56:18.920 for goals to encourage utilities 02:56:20.050 --> 02:56:21.780 to diversify their supply chains 02:56:21.780 --> 02:56:24.100 and in those communities as well. 02:56:24.100 --> 02:56:25.500 And those are things we will 02:56:26.575 --> 02:56:28.960 certainly consider going forward. 02:56:28.960 --> 02:56:30.960 On October 16th 02:56:30.960 --> 02:56:35.420 the disadvantaged communities advisory group will meet 02:56:35.420 --> 02:56:40.072 and hear joint presentation from the PUC and the CDC 02:56:40.072 --> 02:56:42.310 about metrics and various 02:56:42.310 --> 02:56:45.030 definitions of disadvantaged communities. 02:56:45.030 --> 02:56:46.840 The CEC will also present 02:56:46.840 --> 02:56:49.610 under building decarbonization efforts 02:56:49.610 --> 02:56:53.650 and that's October 16th at 1:00 p.m. 02:56:53.650 --> 02:56:56.110 Of course, something held virtually. 02:56:56.110 --> 02:57:00.933 Finally we issued our draft resolution 02:57:00.933 --> 02:57:05.933 with the PUC enforcement policy earlier this month 02:57:07.870 --> 02:57:10.180 in I'm sorry, late last month. 02:57:10.180 --> 02:57:13.950 Comments are due on October 22nd 02:57:13.950 --> 02:57:18.650 and it will appear on the November 5th agenda. 02:57:18.650 --> 02:57:22.300 We encourage people to provide comments on that 02:57:22.300 --> 02:57:26.870 and also reminder will be on the November 5th agenda. 02:57:26.870 --> 02:57:27.703 Thank you. 02:57:30.430 --> 02:57:32.500 Thank you Commissioner Rechtschaffen. 02:57:32.500 --> 02:57:33.850 Commissioner Guzman Aceves. 02:57:34.966 --> 02:57:36.950 Thank you, President Batjer. 02:57:36.950 --> 02:57:38.240 As many of you know 02:57:38.240 --> 02:57:42.830 we had a workshop on frontiers we organization yesterday 02:57:42.830 --> 02:57:44.888 and thank you all for participating. 02:57:44.888 --> 02:57:49.060 I want summarize it other than just to reflect in general 02:57:49.060 --> 02:57:53.929 that he's used is very concerning applications 02:57:53.929 --> 02:57:56.060 or you heard the struggles from many 02:57:56.060 --> 02:58:01.060 of their service area residents that are currently 02:58:02.390 --> 02:58:05.343 struggling, not just with broadband, but with the voice. 02:58:06.290 --> 02:58:07.658 So I really do. 02:58:07.658 --> 02:58:11.005 We have a lot of work to do there, and I welcome many 02:58:11.005 --> 02:58:15.965 of your thoughts on how best to construct this 02:58:15.965 --> 02:58:19.450 the call really important 02:58:19.450 --> 02:58:22.010 enforcement mechanism to make sure the commitment 02:58:22.010 --> 02:58:24.330 that the company is alleging are 02:58:24.330 --> 02:58:27.623 actually going to see themselves into reality. 02:58:29.000 --> 02:58:32.130 Other than that a couple other updates I wanted 02:58:32.130 --> 02:58:34.650 to share that Commissioner Shiroma and I working 02:58:34.650 --> 02:58:36.930 with the state water resources control board 02:58:36.930 --> 02:58:41.930 for a workshop on water customers and the impacts of COVID. 02:58:42.440 --> 02:58:44.543 And that will be on October 30th 02:58:44.543 --> 02:58:49.543 and I welcome your participation and some, or all of that. 02:58:50.350 --> 02:58:54.330 It will be, as I said, in partnership with the water board. 02:58:54.330 --> 02:58:57.848 So we'll be looking at both IOUs and public water systems 02:58:57.848 --> 02:59:02.790 and reflecting on the state of affairs with these systems 02:59:02.790 --> 02:59:04.970 especially the small systems that 02:59:04.970 --> 02:59:09.766 have particularly concerning cashflow issues. 02:59:09.766 --> 02:59:14.648 And of course the customers who are accruing arrearages 02:59:14.648 --> 02:59:16.810 and really trying to get a handle 02:59:16.810 --> 02:59:19.450 on the problem and start to talk about solutions 02:59:19.450 --> 02:59:22.687 in preparation for next spring 02:59:22.687 --> 02:59:26.713 when the moratorium is scheduled to be lifted. 02:59:27.686 --> 02:59:32.440 And as you know, we'll be providing an update on a workshop 02:59:32.440 --> 02:59:35.773 similarly focused on the energy side in November. 02:59:37.110 --> 02:59:39.046 I also wanted to give a bit 02:59:39.046 --> 02:59:42.488 of a heads up on the California advanced services fund. 02:59:42.488 --> 02:59:44.620 As you know, this is our broadband 02:59:44.620 --> 02:59:49.620 funding program that is overly subscribed and that's many 02:59:50.260 --> 02:59:54.210 of our programs are this particular need is really great. 02:59:54.210 --> 02:59:56.640 And one of the charges that the 02:59:56.640 --> 02:59:59.868 legislature gave us this budget cycle was due a trailer bill 02:59:59.868 --> 03:00:03.965 on directing us to really maximize the federal funding 03:00:03.965 --> 03:00:08.965 and federal funding out play is the FCCS latest round 03:00:10.360 --> 03:00:13.180 of funding known as our doff 03:00:13.180 --> 03:00:18.180 those development, something fun, and the art off funding. 03:00:19.733 --> 03:00:21.530 Unfortunately the auction is just going to take place 03:00:21.530 --> 03:00:24.156 later this month October 29th, 03:00:24.156 --> 03:00:25.630 and then the FTC will decide 03:00:25.630 --> 03:00:29.311 on that hopefully early next year. 03:00:29.311 --> 03:00:33.595 And so we put out a proposal on the proceedings to 03:00:33.595 --> 03:00:37.970 in order to optimize this funding essentially to wait 03:00:37.970 --> 03:00:40.920 on the pending applications that were filed 03:00:40.920 --> 03:00:45.920 on May 4th in order wait until the sec makes their decisions 03:00:46.080 --> 03:00:50.360 in order to see where one unfortunate part. 03:00:50.360 --> 03:00:52.660 I know President Batjer sent a letter to the SPC 03:00:52.660 --> 03:00:54.853 in this regard, but was rejected 03:00:54.853 --> 03:00:59.853 is now we don't want to disadvantage our geographical areas 03:01:00.960 --> 03:01:03.950 and our applicants to the Ardoch process. 03:01:03.950 --> 03:01:08.620 And the FCC essentially has a component to a rule that says 03:01:08.620 --> 03:01:13.090 if you're an areola receiving funding and you're ineligible 03:01:13.090 --> 03:01:16.710 I'm shorthanding that a lot, but in order to avoid that 03:01:16.710 --> 03:01:18.350 we're going to have to wait 03:01:18.350 --> 03:01:21.480 until after the STC makes a decision. 03:01:21.480 --> 03:01:25.560 And this was, you know, it is alpha comment, but it's not 03:01:25.560 --> 03:01:29.330 it is something that we are essentially obligated to do 03:01:29.330 --> 03:01:31.210 with this trailer bill. 03:01:31.210 --> 03:01:34.130 And we really want to draw down as much funding 03:01:34.130 --> 03:01:37.250 but that does mean a delay in making a decision 03:01:37.250 --> 03:01:41.760 on those applications until after the SPC acts. 03:01:41.760 --> 03:01:43.230 Now, I do want to say 03:01:43.230 --> 03:01:46.490 that there is still a lot of work that's coming forward 03:01:46.490 --> 03:01:49.931 for those projects that do not have the federal overlay 03:01:49.931 --> 03:01:52.490 and staff is currently working on those. 03:01:52.490 --> 03:01:57.490 And so we should be seeing those approvals next month. 03:01:57.680 --> 03:01:58.950 So I'm very excited about that 03:01:58.950 --> 03:02:01.630 in those getting going that did want 03:02:01.630 --> 03:02:03.690 to just give everyone a general awareness 03:02:03.690 --> 03:02:06.700 that for those applications that 03:02:06.700 --> 03:02:10.120 have significant federal overlap, we are going to wait 03:02:10.120 --> 03:02:11.410 until the SEC acts 03:02:11.410 --> 03:02:14.433 in order to draw down more federal funding for our state. 03:02:15.345 --> 03:02:17.980 And finally, I wanted to reflect 03:02:17.980 --> 03:02:20.660 about the latest community that we have engaged 03:02:20.660 --> 03:02:23.660 with on their need or connectivity. 03:02:23.660 --> 03:02:27.610 I know I talked before about a meeting with the focused 03:02:27.610 --> 03:02:31.090 on the city of Salinas, where we saw the two young girls 03:02:31.090 --> 03:02:33.490 you know, homework outside of the taco bell. 03:02:33.490 --> 03:02:35.680 And what came about during that conversation 03:02:35.680 --> 03:02:39.006 we assumed as about eight superintendents. 03:02:39.006 --> 03:02:40.517 I think I mentioned last time he was a teacher 03:02:40.517 --> 03:02:42.460 and the superintendent said 03:02:42.460 --> 03:02:44.620 you know, yes, we have an urban me. 03:02:44.620 --> 03:02:46.559 That's the biggest need where 03:02:46.559 --> 03:02:47.950 kids cannot afford the internet 03:02:47.950 --> 03:02:49.800 which of course Commissioner Shiroma 03:02:49.800 --> 03:02:52.770 Lifeline decision will hopefully assist in that. 03:02:52.770 --> 03:02:57.240 The other issue are still these communities that are 03:02:57.240 --> 03:03:02.240 at the edge of service areas that for one reason or another 03:03:02.500 --> 03:03:05.230 that current internet service providers at 03:03:05.230 --> 03:03:08.100 and T Comcast charter and a couple of others 03:03:08.100 --> 03:03:12.670 in this case have decided not to extend service 03:03:12.670 --> 03:03:13.847 to this community. 03:03:13.847 --> 03:03:15.643 And the community is called San Diego. 03:03:15.643 --> 03:03:18.321 It's an old farm worker camp in Monterey County, you know 03:03:18.321 --> 03:03:23.321 and I just want to highlight this because it's one 03:03:25.000 --> 03:03:27.563 of those areas where we have this 03:03:27.563 --> 03:03:31.950 disenfranchised meant happening with communities that 03:03:31.950 --> 03:03:34.690 are low income and are even red lines 03:03:34.690 --> 03:03:36.470 by these internet service providers. 03:03:36.470 --> 03:03:41.030 So I really want to call on any of them at 03:03:41.030 --> 03:03:45.210 and T Comcast charter to extend your service as quickly 03:03:45.210 --> 03:03:47.410 as possible to the community 03:03:47.410 --> 03:03:50.850 of San Diego there's a few dozen kids there. 03:03:50.850 --> 03:03:54.081 And what happens now is the little community hall they have 03:03:54.081 --> 03:03:56.785 and it's bringing, it has 03:03:56.785 --> 03:03:58.270 like a wisp services, very not great. 03:03:58.270 --> 03:03:59.970 Anyway, that's a community hall. 03:03:59.970 --> 03:04:01.440 There has service 03:04:01.440 --> 03:04:04.490 and what ends up happening is all the kids are going there. 03:04:04.490 --> 03:04:06.740 It's functionally you know, 03:04:06.740 --> 03:04:08.370 doing exactly what we don't want them to do 03:04:08.370 --> 03:04:11.940 which is to gather in a group and they're doing that 03:04:11.940 --> 03:04:15.240 in order to try to get their education. 03:04:15.240 --> 03:04:18.459 So this is a very urgent situation. 03:04:18.459 --> 03:04:21.890 The quickest solution, of course, we've been talking 03:04:21.890 --> 03:04:24.860 about these longer term solutions about local governments 03:04:24.860 --> 03:04:26.820 you know, being able to really foster 03:04:26.820 --> 03:04:29.760 and enable more public private partnerships 03:04:29.760 --> 03:04:34.760 but we need these private ISP to step up. 03:04:35.100 --> 03:04:38.610 And we have a current fund funding element 03:04:38.610 --> 03:04:40.682 of the CSS program called the 03:04:40.682 --> 03:04:42.325 line extension program that has been 03:04:42.325 --> 03:04:45.564 has not been drawn upon from them. 03:04:45.564 --> 03:04:48.710 So with that, I just want to let you know 03:04:48.710 --> 03:04:51.445 that I'll be making every effort to call them to the table 03:04:51.445 --> 03:04:54.899 to see how we can help them make these connections. 03:04:54.899 --> 03:04:58.110 But it's just another example 03:04:58.110 --> 03:05:02.880 of a community where, again, according 03:05:02.880 --> 03:05:06.170 to the local folks, there there's an at and T lines 03:05:07.339 --> 03:05:10.000 off the street from the community 03:05:10.000 --> 03:05:15.000 fiber and this community is not connected. 03:05:15.210 --> 03:05:17.150 So, you know 03:05:17.150 --> 03:05:20.810 we obviously need a much bigger federal overhaul here 03:05:20.810 --> 03:05:24.210 but this is a call to action to them. 03:05:24.210 --> 03:05:28.090 And I hope that they will be responsive. 03:05:28.090 --> 03:05:29.090 Thank you very much. 03:05:31.820 --> 03:05:34.637 I hope AT&T is listening really. 03:05:37.052 --> 03:05:39.550 Anyway. Thank you very much. 03:05:39.550 --> 03:05:41.690 And Commissioners thank you for all of your health 03:05:41.690 --> 03:05:46.690 for reporting actually finishes our public meeting today. 03:05:49.160 --> 03:05:51.490 So the public meeting is adjourned. 03:05:51.490 --> 03:05:52.913 Thank you all very much. 03:05:55.150 --> 03:05:56.033 Thanks, bye.